Friday, October 25, 2024

My opinion on stock market crises

Since stock markets have existed, there have always been crises.Companies that lose customers eventually go bankrupt. Each product has a place in the right place, but then a new version is released by a new company, and this leads to a lot of competition and bankruptcy. But definitely, a good product or service sometimes manages to stick around longer than others. Thanks to good management or the need for this service or product. Life is changing rapidly, and this leads to crammed services and goods. But why do stock market crises occur? Politicians have a significant influence. They make most of the time inadequate decisions, like starting a war or improperly controlling our tax money. At the time, there were also fewer players on the stock market and less money in circulation. With the advent of rapid information browsing, many people get caught up in their emotions and make many mistakes. For instance, when numerous analysts report a decline in the stock market, it encourages investors to buy shares because they have more confidence, and their prices soar. Realistically, when buying at a very high price, when to expect a return, like, human life is limited.Everyone is afraid of printing money and taking it as a bubble. But everyone wants higher wages. Where will this money come into circulation? Certainly, in this world we live in now, there are many more people to invest in. Most no longer trust the dollar or the currencies of their countries and are looking for salvation in the fictional digital currency Bitcoin. But this digital money is decentralized. In addition to spending a huge amount of electricity, they become quick money earners, and vice versa. If something is out of the control of the politicians. What are our politicians for, for example? I don't think anarchy is a preference. Then who will control the distribution taxes for the infrastructure?So for the stock market crisis, except that most of the time the politicians are to blame. From here on, in most cases, it will be the investors themselves who recklessly buy at high prices and sell out in panic and lose confidence. It's good that people forget after 40 and then it starts to restore trust again.

Author Sezgin Ismailov

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