Why is the stock market plunging?

Answer 1

Well, it is not even close to plunging the way it should be. It has gone up five years without much of a pause. I think we will have big recession/crash in the next couple years.
Just a few things that should make you stay away from the US stock market or US dollar based investments period:

1) Oil at almost $100 a barrel;

2) A dollar that is turning into toilet paper, losing like up to 50% of its value against other world currencies over a short period of time and still falling, thanks in part to the Fed, I mean come on the Canadian dollar is equal to $1.10 US, now;

3) Gold hitting a 25 year high;

4) Just the war in Iraq costs $2 Billion a week;

5) China and other countries switching away from the US dollar, some countries are refusing to be paid in US dollars for products/services;

6) Commodities such as copper, metals, wheat, corn, etc are at or near record highs;

7) This year was the highest record of job losses ever in the financial services sector;

8) The housing market is in recession. Record numbers of foreclosures.

I could go on.

Answer 2

Everyone you ask will have a different reason. Some say that the resent market rise has been on low volume and could not support this level. Some say it is due to the poor loan financial crisis. Some say that what goes up must eventually come down. The market does what it does. Better get used to it and trade in the trend direction.

Answer 3

a lot of factors. some are the housing market ,the price of oil. which is near 100 dollars a barrel. the housing market because of lenders making it easier for people to purchase a home. in which they wouldn't qualify for. and Americans living on credit. that's something the government should be at fault no matter who's in office. we Americans need to make scarifies. or else the dollar will plunge even more. the dollar is weak. we need to do something about that

Answer 4

THIS IS THE ANSWER!!!!

SPECULATORS.

Really there are always problems going on, it is just the skiddish people and speculators that are messing with the market, which is great. Crappy market means cheaper stocks to buy!

All that other stuff like oil prices, money problems, the war, the cure for rabies and athlete's foot, the mortgage companies, and Mike Vick's dogs are nothing but short term stock market noise.

Answer 5

Fear and greed drive the market in the short term. Basically, there are more people are selling stocks than those who are buying them. If you exclude all other factors (which is not particularly wise), the best time to buy anything is when you have more sellers than buyers. That is called a buyers market.

Answer 6

have you ever observed that the inventory industry has been plunging ever for the reason that Barack Obama began to alter into conventional? i could say December of 2007 is while this began out, and till now we knew something approximately him, the financial gadget replaced into effective. pass lower back to early 2007, the financial gadget replaced into effective. 2006, the financial gadget replaced into effective. in fact, during October of 2007, the Dow Jones business common set an all time severe, the place the index replaced into close to 14,000. Now it somewhat is headed below 7,000. i understand I sound loopy, yet this entire mess has looked at situations like a industry reaction to Obama himself. unhappy, isn't it?

Answer 7

Looks like you have your answer in all those opinions, but that sums it up, the market moves on two factors, FEAR and GREED, if people see a safe profit it rallies if they think it's going to slide they sell. But you can see they don't always see eye to eye. One is always the optimist and the other the pessimist.

Answer 8

Rising oil prices, plunging real estate values, rising numbers of foreclosures.

Answer 9

Investors are worried people will be defaulting on mortgages as their variable rates go up, therefore hurting the economy. $98 a barrel oil doesn't help either.

Answer 10

More fear than greed. Fear of financial meltdown and followed by recession. At the moment, there is no good news ahead.