| The market is in a financial crisis because of worries of a financial crisis?!? |
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Driver
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Alright.l get it, (a little).Companies make money, companies sell shares to people.The company does better, makes more money, shares are worth more. Now, how, on this green earth do we have a financial market that gains or looses money based on how people feel about it?It makes me wanna ask:Where does the money go?Does it evaporate?Where does it come from?Is this the mysterious function of black holes in the universe?Instead of telling our financial advisers whether or not we want risky or more stable investments perhaps we should be asking for the ''happy, confident l do not care what people think about me'' fund.Where is THAT fund?l think we should call it the ''Sticks and Stones Do not Break My Bones'' fund.Say what you want about it, it does not care, it just keeps growing, (out of sheer confidence in itself).
It is sounds ridiculous does not it?But seriously, how can we have a financial system that rises and falls based on how people feel about it?Is not money a concrete thing?Someone please help me to understand this.I am beginning to think our entire financial system is a sham.-Smoke and mirrors... Lol,I am not worried and in need of a business ''scheme''.I am plenty resourceful enough to take care of myself. I am just curious. Any real ?
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dwi
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Financial system has always been subject to perception, Sensitive to rumours & though money might seems concrete it is a volatile asset based on perceived value.
If u buy a piece of art, sell it for a profit & the next guy finds out it is a fake the value declines, where did the money go? Same thing with markets.
When u choose a stock u base ur choice on what u think the company is worth, u choose it because u think it is worth more than it is currently selling for & u think u will get a good return. This is where the market is like gambling. Because if u r wrong, perhaps u forgot to check the company out thoroughly & they did not have the cash flow to survive, instead when someone notices they will fall & u lose.
It has always & will always be a dangerous play with money.
Safe investments r usually gold. It good times risks can be taken but at times like this we wait for the bottom & try to grab some of the cheap good stocks when it does - using a crystal ball of course!
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