Will we see effects of this "crash"? Thanks!
2007-02-27 14:35:20 · 7 answers · asked by SuzieQ92 3 in Business & Finance ➔ Investing
It doesn't affect you AND it doesn't affect investors. It only affects short-term speculators.
2007-02-27 14:57:57 · answer #1 · answered by svikm 3 · 1⤊ 0⤋
The stock market didn't crash--it went down 3.3%. Not even a receession, much less a crash. It doesn't mean anything to non-investors unless the trend continues.
If the stock market seriously dips or goes into recession, companies might start to raise prices in order to raise earnings in an attempt to increase their stock's value. The Fed will likely lower interest rates in an attempt to spur investment (since inflation will be considered under control). This will beneft consumers as well as businesses. Mortgage and other loan rates will drop (as well as money market/savings rates).
Overall it's good, though for everyone. The market can't go up forever without a correction (and it's been rising steadily for over 5 years). It should continue to rise over the long haul, but it will take periodic dips. No need to panic.
2007-02-27 16:27:13 · answer #2 · answered by lizzgeorge 4 · 1⤊ 0⤋
It depends on whether it is a fluke or part of a new trend downward. Stock market declines make wealth evaporate and that does have a domino effect. As individuals and companies see their wealth decline they tend to change their spending habits.
2007-02-27 15:59:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Buying opportunity.
2007-02-27 14:40:56 · answer #4 · answered by Grandpa Shark 7 · 0⤊ 0⤋
nope, just a bump in the road, no need to panic
2007-02-27 14:42:51 · answer #5 · answered by bubba 4 · 0⤊ 0⤋
NOTHING PERIOD. It only affects stockholders and today you should be glad you are not one.
2007-02-27 14:50:47 · answer #6 · answered by Akbar B 6 · 0⤊ 0⤋
Nothing.
2007-02-27 14:42:22 · answer #7 · answered by joe s 6 · 0⤊ 0⤋