2007-02-27 08:41:30 · 5 answers · asked by summit_of_human_intellect 3 in Business & Finance ➔ Investing
It does not have a meaning. My suspicion is that the cause is likely as follows:
The Chinese market had reached record high prices and dropped suddenly and drastically. Certain types of investors, such as hedge funds, borrow extensively and in stressed markets can lose extraordinary sums quickly. In order to quickly pay down this debt in order to minimize the magnitude of the loss, they quickly sell their most liquid assets, in this case, US stocks and positions in the dollar and dollar denominated debt, most likely treasuries.
My guess is the drop in the US market was attempts to raise cash to contain the impact of losses in the Chinese market.
There is no meaning, it just is. Causes will not be known.
2007-02-27 08:51:41 · answer #1 · answered by OPM 7 · 2⤊ 0⤋
It means what a stock market can do. For long term investment, this will not make or break anyone.
2007-02-27 09:45:57 · answer #2 · answered by Sir W 3 · 0⤊ 0⤋
Just what the recent rise meant - nothing. Markets are driven by humans in the short run & humans are run by emotion. Have to not react to the short term.
2007-02-27 09:17:28 · answer #3 · answered by vegas_iwish 5 · 1⤊ 0⤋
We will all go broke if you don't go out and buy massive amounts of STUFF
2007-02-27 08:49:16 · answer #4 · answered by Bean 2 · 0⤊ 1⤋
It means there were more sellers than buyers.
2007-02-27 08:46:41 · answer #5 · answered by joe s 6 · 0⤊ 2⤋