What Is There To Understanding The Stock Market?
There are many things involved to understanding the stock market. There are too many to list in just one post. Instead I’ll just focus on one in this particular post that has been in the news lately.
What happens to a stock after it’s been beaten down so bad? Does it have a chance to recover and come back stronger than it was i the past? That all depends on the company that issues those stocks. To think that Lehman Brothers will work their way out of bankruptcy and continue their history that they’ve created over the last hundred and fifty eight years. I doubt it very much, as a matter of fact they’ve already been dived up to others in the industry so my advice is don’t buy their stock, it’s worthless.
As for other companies like general motors or even Ford, they stand a better chance since theybring a lot more to the bargaining table. What they bring is not only the product they make, but the jobs that are created for those products to be made.Between the two companies they employ hundreds of thousand employees. If the companies were to go out of business, it would add to the already high level of unemployment.
This country wouldn’t be able to handle that in a timely manner that it would cascade into other sectors of our economy. The government doesn’t really have a choice but to reach out and assist them like they did in the financial sector.
Would I invest in General Motors or Ford? Not at this time. There are too many variables to consider this a possible trade. You need to understand that because of these problems in the auto industry, big investment funds and hedge funds are going to stay away from them. Without the smart money investing in these companies, they will have troubles getting their stocks back to any descent level to make any respectable gains.
My advice is to stay away from any stocks that are issued by companies that are in any fiscal trouble. There are too many other strong companies out there to waste your time on a long shot. after all this isn’t Las Vegas.
Continue learning about the stock market, by reading on.
Tags: auto industry, bankruptcy, financial sector, general motors, hedge funds, investment funds, lehman brothers, sectors, Understanding The Stock Market, unemployment