Anonymous
Anonymous asked in Social ScienceEconomics · 2 months ago

Is it ironic that in an effort to save their portfolios by selling their stocks, that investors cause a large scale economic crash?

If they were all simply willing to take a hit on the chin, they could avoid everyone getting KO’d.

6 Answers

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  • 2 months ago

    That's the conflict between the individual interest and the collective interest. It's in the individual interest to sell to limit losses. But when everyone does it, they are all in worse shape. 

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  • Oiy
    Lv 6
    2 months ago

    A she likes to do a he if it is invisible.

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  • Anonymous
    2 months ago

    That's why I'm just sitting on my investments.  I know from many of these that the market will come back and more.  But lots of people I suspect are making money by selling out on the way down if they go tout early and are now buying in at a discount.

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  • 2 months ago

    You are, or should be, aware, for every buyer there is a seller.

    No one knows if the sellers were investors and not traders and/or institutions.

    Markets "crashes" when there are traders/investors are not willing to step up and buy.

    Source(s): from the Street
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  • 2 months ago

    The market really only has one rule - buy low and sell high. Crashes are a reality check that happen when perception and reality are completely out of sync. Those people who don't feel uneasy when something is overvalued are the ones that are inevitably going to get burned.  

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    • Anonymous
      Lv 7
      2 months agoReport

      Following the market is part of buying stocks. A bad economy is going to affect everyone. It's matter of how bad, not if.

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  • Judy
    Lv 7
    2 months ago

    That's how the market works though.

    • Anonymous2 months agoReport

      Ironic, right?

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