Market Meltdowns: Then and Now
Read the full article: http://thecuriousinvestor.com/2008/03/31/market-meltdowns-th...
After the last post comparing the history of Market Meltdowns (particularly the 1980s Savings and Loan Crisis), I decided to talk a little bit about how our current market correction differs from back then. I try to shed some light on mortgage backed securities and how they've managed to undermine our entire financial system as we know it and destroy billions of dollars in value. I then do a quick review of how the Fed has now chosen to respond to the mounting problems presented by mortgage backed securities and their derivatives. What we find is that there's no simple blueprint that to help us predict what's to come. As with most things, things change as much as they stay the same.
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Definatly don't get caught
Definatly don't get caught in the trap by the people telling you about 'how good a vaue you get buying stocks on their way down'.
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At Big Wave Trading you'll find a no non-sense approach to investing. We do not offer opinions, we offer facts and a simple but decisive view on the market.
Sometimes it is good to buy
Sometimes it is good to buy a stock on pullbacks, but the important thing to remember is that you need to make sure that it is just a market adjustment and not something that has fundamentally altered the company.
Good quote marketnews. It is
Good quote marketnews. It is so true, in more than just investing.
Those that don't learn from
Those that don't learn from history are doomed to repeat it.
Things can never be simple,
Things can never be simple, but history does repeat itself.
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At Big Wave Trading you'll find a no non-sense approach to investing. We do not offer opinions, we offer facts and a simple but decisive view on the market.