Stock Markets Exposed
Recession & Stock Market-Correlation?
Am I not getting this? Analysts say that since the US Economy is slowing down we should invest in defensive stocks like mcdonalds, procter gamble, etc. Then how come for about a week they have been going down? So does that mean even though we are in a so called recession these stock values will go up? same with agriculture-agu, mon, pot-these stocks have been going down as well... so when will these stocks start to pick up in value?
Public Comments
- Some companies do well in a recession. Like Walmart for example. But I feel your pain. I have watched my formerly powerhouse portfolio get whooped.
- Invest in foreign based mutual funds. www.franklintempleton.com
- in long run for the seasoned investor the RECESSION & STOCK MARKET CORRECTION is a boon and blesses in disgrace. now is the time to take bearish avator. no need to don't get out of the market.
- recession time is best to buy stocks.but dont know when it will become bullish again
- In a bear market, everyone gets taken down. Many times we see solid companies being reflected by a poor stock price in such a market. But remember that there is cash sitting on the sidelines. When it is reinvested at some point by institutional investors, they look for value and pick these solid companies.
- The common phenomena is people at recession get scared and started selling their stocks. This over supply of stock in the market reduces stock price. In near future when the economy starts to build up, then we will see more people to buy these stocks and therefore excessive demands of stocks will end up with increase of price. Now, whether you should sell or buy stock at recession depends on your point of view. It is always wise to invest for a longer period i.e. 5yrs to 10yrs goal. Historically recessions even depressions does not exist for such a long period. The stock market must start rising soon. By 2009 the US economy is expected to gain2.3% growth as currently it is down by nearly4%. The point is, as the downturn is not for a long time, it is wise to buy stocs now with a long term view.
