It is a situation whereby share prices keep on falling lower and lower.
Although at a certain point in time share prices will head for a rebound, the rebound normally will not be sustained.
Thus, the downward escalation of share prices resumes as bad news keeps surfacing one after another.
Investors and speculators become jittery and sell their shares at a loss.
Bad debts become the order of the day and lawyers are busy issuing demand letters.
Suddenly, those smiling faces are replaced with sadness and a solemn mood.
Brokers also find themselves in trouble when clients fail to settle debts.
STOCK MARKET INDEX ----> falling -----> Low ------> New Lows----->
Scenario:
Bad news abound
Forced selling by brokers
Bad debts to be collected
Sad faces around
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Wednesday, 22 October 2008
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