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.
- random_manLv 72 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.
- OiyLv 62 months ago
A she likes to do a he if it is invisible.
- Anonymous2 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.
- A nobodyLv 72 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
- What do you think of the answers? You can sign in to give your opinion on the answer.
- AnonymousLv 72 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.
- JudyLv 72 months ago
That's how the market works though.