Why do stocks necessarily drop during a recession?Why does the stock market consistently overreact to the...
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Why do stocks necessarily drop during a recession?
Why does the stock market consistently overreact to the business cycle?How do small cap stocks perform vs. large cap stocks (like Dow constituents) during bear trends?Why do people always talk about stocks that pay high dividends?What exactly happens during a settlement period?Should I talk about my stocks?Are bonds really a recession proof investment?What caused this drop?How to invest in the stock market during a recession?Does every recession start with a trigger/shock? What are the likely triggers for the next one?What does one typically use as a money reservoir for stocks, when they are “on sale”?
Why does stocks necessarily drop during a recession? Where does the money go in favor of these assets?
Or is the first statement not true?
stocks investing
edited 1 hour ago
JohnFx♦
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
add a comment |
Why does stocks necessarily drop during a recession? Where does the money go in favor of these assets?
Or is the first statement not true?
stocks investing
edited 1 hour ago
JohnFx♦
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
add a comment |
Why does stocks necessarily drop during a recession? Where does the money go in favor of these assets?
Or is the first statement not true?
stocks investing
edited 1 hour ago
JohnFx♦
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
Why does stocks necessarily drop during a recession? Where does the money go in favor of these assets?
Or is the first statement not true?
stocks investing
stocks investing
edited 1 hour ago
JohnFx♦
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
edited 1 hour ago
JohnFx♦
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
edited 1 hour ago
JohnFx♦
34.9k883186
edited 1 hour ago
JohnFx♦
34.9k883186
edited 1 hour ago
JohnFx♦
34.9k883186
34.9k883186
asked 4 hours ago
MaxedMaxed
1636
asked 4 hours ago
MaxedMaxed
1636
asked 4 hours ago
MaxedMaxed
1636
1636
add a comment |
add a comment |
1 Answer
1
active
oldest
votes
During a recession, economic growth slows. This can lead to higher unemployment which in turn results in lower consumer and company spending which in turn leads to decreased company revenue and profit, lowering the fundamental value of stocks.
Lower investor confidence contributes to market decline as investors move to safer assets (defensive stocks, bonds, CDs, money markets). Some people, particularly the newly unemployed, pull money out of the market just to meet basic needs.
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
add a comment |
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1 Answer
1
active
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votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
During a recession, economic growth slows. This can lead to higher unemployment which in turn results in lower consumer and company spending which in turn leads to decreased company revenue and profit, lowering the fundamental value of stocks.
Lower investor confidence contributes to market decline as investors move to safer assets (defensive stocks, bonds, CDs, money markets). Some people, particularly the newly unemployed, pull money out of the market just to meet basic needs.
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
add a comment |
During a recession, economic growth slows. This can lead to higher unemployment which in turn results in lower consumer and company spending which in turn leads to decreased company revenue and profit, lowering the fundamental value of stocks.
Lower investor confidence contributes to market decline as investors move to safer assets (defensive stocks, bonds, CDs, money markets). Some people, particularly the newly unemployed, pull money out of the market just to meet basic needs.
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
add a comment |
During a recession, economic growth slows. This can lead to higher unemployment which in turn results in lower consumer and company spending which in turn leads to decreased company revenue and profit, lowering the fundamental value of stocks.
Lower investor confidence contributes to market decline as investors move to safer assets (defensive stocks, bonds, CDs, money markets). Some people, particularly the newly unemployed, pull money out of the market just to meet basic needs.
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
During a recession, economic growth slows. This can lead to higher unemployment which in turn results in lower consumer and company spending which in turn leads to decreased company revenue and profit, lowering the fundamental value of stocks.
Lower investor confidence contributes to market decline as investors move to safer assets (defensive stocks, bonds, CDs, money markets). Some people, particularly the newly unemployed, pull money out of the market just to meet basic needs.
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
answered 2 hours ago
Bob BaerkerBob Baerker
16.5k12349
16.5k12349
add a comment |
add a comment |
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