Your Questions About What Is Affecting The Stock Market Today

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William asks…

what is affecting todays stock market?

i have never really paid attention to how much the stock market fluctuated until i joined my companies 401(k). i am currently invested as an “aggressive level’ but with the way today’s stock market is doing. Should i change my risk level? or should i ride it out? That is why i wanted to know what is our affecting today’s market for my account to have such a loss.

financi4 answers:

Fear. Fear is affecting the market now. Fear that the markets will continue to drop. If you’re already in, you may have to ride it out. But you don’t have to put in any new money into the same accounts. You should be able to put new money into a more conservative portfolio.

Charles asks…

What is the greatest impact of the stock market crash of 1929 that affects us until today?

financi4 answers:

The Securities and Exchange Commission. Before the crash, securities (e.g. Stocks) were regulated on a state by state basis, and very ineffectively — people could ignore them by offering securities across state lines. The crash and the aftermath encouraged the federal government to enact laws that couldn’t be avoided that way. The uniform reporting requirements for publicly traded companies derive directly from reforms of that era.

David asks…

With today’s dip in the stock market (due to the Greek crisis), what is your opinion about buying stock?

I am looking to invest a substantial amount of money in stock (particularly WFC, BAC). If the european situation continues to worsen, would the stock market continue to feel the affects of it?

financi4 answers:

Market correction is overdue (major one). Wait for couple of months and see if this happens to be a major correction 15-20% and more, if this indeed is then start investing only when it shows some sign of recovery.

This certainly is not time to invest.


Ken asks…

Stock market: how to find relevant information for trade?

For those have experience in the stock market I was wondering how do I find valid information that affects the stock market? Is there any sites that is useful to help me make better decisions. I’m asking because I notice that market today (April 27) tanked today on bad news.

How do I find before hand? Or is it just that they are waiting for the news in the morning? I guess, overall, need to find out what affects the market and wondering if you can share your experience with me that can help out a starter trader. Thanks guys!
Thank you everyone for your help, except the spammers. Have a good day!

financi4 answers:

Here are the sources I use. MSN Money, Motley Fool, Bloomberg (website, radio and tv) and Google finance. Many things can and do effect the market. Political situations, the weather, credit ratings, life in general. If you are planning on investing in the stock market, I would recommend you read Rule#1 and you should only invest in things you know about. Do your homework before you invest. Best of luck to you.

James asks…

How does “fear” affect whether the stock market does well?

I generally get the idea of how the stock market works, but at the same time how does “fear” determine whether the day goes well. Like the hole crisis, and bail out; today the stocks plummeted what 10,000 points? Why can’t people just buy to keep the market rolling? Is it that there just isn’t any money?

I put this in the political section because I knew I would get more responses, thanks
Seems kind of silly; emotions decide whether our economy does well or not…hmm…

financi4 answers:

Stock Market is gamble on the future so if people think the future is dark then the stock or the whole market falls. They base the future on economic meters and what people think. It is completely stupid and really should have no impact on the real world — yet so many companies are public and are greatly impacted by Market which has a great effect on the whole economy

Mark asks…

Why did my YOKU stock go up today? Is it linked to china? It’s Sunday so I’m sure the market is closed here.?

To my surprise YOKU is up $9 a share. I am pleasantly surprised. But I never knew what goes on in China directly affects the stock prices here…
In my scott trade account. my account balance has increased and lists YOKU price of $42.70.

But when I type the stock individually the stock price is as of fridays close in the 30’s

financi4 answers:

What site did you get the stock price from? Prices can’t change while the exchanges are closed, unless your source lists overseas prices.

Chris asks…

What are the consequences on society, general economy, banks and stores if the stock market falls?

I’m nowhere near an expert when it comes to the stock market, but we’re learning about it and need to know if the market falls, like it has today how does it affect businesses like banks and stores and the general population.
Please try to keep it simple (but not one sentence responses)

Thank you 🙂

financi4 answers:

If the stock market falls it is not the cause of anything. It is more the effect of a bad economy. If GM cannot sell any cars, GM loses money, it’s stock goes down in price, and they lay off their employees.

GM stock isn’t wiped out because the stock market is bad, GM’s stock is part of the overall market and is one of the stocks in the Dow Jones Average and the S & P 500, so its decline causes these averages to decline.

It is not a case of the dog waging the tail. The dog is GM and the tail is the Stock Market.

In a bad economy it is not just GM doing less business. If they were the only company having bad times, it would make very little difference, but when thousands of companies are doing bad, then the market goes down.

A bad economy affects banks,stores, employees who get laid offf. The only people who gain are those who sell short on the market and cover these short sales after the prices drop.

It also helps those who sell out early and buy back at the bottom.


Daniel asks…

What was important about the stock market crash of 1929?

what was the significance? how did this affect the time period afterwards and even today?

financi4 answers:

I can sum up the answer in two words:
Bank failures (applies to 1930’s depression and today)

The failing banks put a freeze on the economy because when banks fail people and businesses start spending less, a lot less. Partly because of fear and partly because its difficult to get credit (lending more money exposes banks to more risk). Not getting credit wouldn’t be a problem if the consumers and businesses weren’t already so far into debt. During the great depression banks actually decided to offer easy credit but everyone was too afraid to take it.

Other concepts that precipitated the Great Depression and happen to be prevalent in today’s economic crisis:

Hoarding money / Lack of spending / low consumer confidence

Distressed selling (foreclosures, auctioned property)

Fall in profits resulting in many businesses filing bankruptcy

High amount of debt liquidation (personal bankruptcy filings)

Massive layoffs due to slow economy

And so on and so on…

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