when will the stock markets next plunge- when property prices fall or when oil is cheaper?

Question

... or both?

Answer 1

Stock markets are driven by two things:

1) The stored wealth of American investors, some say the discretionary wealth of American investors (I don't)
2) The investments made by foriegners (other countries investing in our markets)

When America's economy goes into its next recession, people will begin pulling money out of their investments to use as savings and to live on. There should be a general trend in transferring some money into less risky investments.

When America's economy (as compared to economies elsewhere in the world) has the appearance of being riskier, foriegners will stop investing here and put their money somewhere else. That will cause our markets to drop by a certain degree.

Falling oil prices create more wealth for investors, so that would tend to drive our markets up, not down.

The "real estate bubble" has been bursting now for 2 years, and yet home prices are still rising, just not at the rate they were 2 years ago. Don't count on American real estate to plunge. It's not a market that you can just pull out of. People live in houses, they don't move when things get bad. The worst that could happen is a very slow drop in real estate prices.

The thing that could pull the rug out from under our economy would be something that disrupts our trade. 9-11 came the closest by downing two important buildings and grounding the commercial air fleet for 3 days. We recovered with nothing more than a series of tax cuts. I predict that it will take nukes in 5 American cities to put a dent in our economy.

Answer 2

Stock markets do not like higher oil prices, but higher oil prices by itself will not make the market plunge. Also watch the INFLATION numbers and what the feds are doing to the INTREST RATES.

Answer 3

The stock market will do extremly well if the oil price prices stay where they are or go cheaper. If the red raisers interest rates the market could go into a resesssion which i dont think will happen.

Answer 4

They will go up when oil is cheaper because people will be paying less to foreign countries. They will only plunge if our economy takes a dive and employment dips.

Answer 5

I dont think you want that to hapend, Imagin if you want to sell you house and endup geting the same amount you pay or less. It's not funy when the stock market goes down.

Answer 6

just to let you know oil never is really going to go down that much anymore, its only going to get higher