In 2009 stock markets crashed when Lehman brothers defaulted on their debt and collapse, leaving many people with huge losses on investment products. People who invested in the stock market also saw huge decline in their asset value.
However, buyers from that period benefited a lot from the cheap asset prices and the rich become richer.
In 2012, the eurozone crisis cause a global decline in stock markets as Greece defaulted on its debt. Spain and Italy were also in a bad debt situation and these countries needed help from Germany, who possess one of the strongest economy in the world to revive them.
After the eurozone crisis, the fed brought out its money printing policy in attempt to recover the labour market in us and to bring about a faster global economic recovery. And by repurchasing bonds at 85billion a month, it kept global interest rates low for companies and consumers.
Low interest rates provided channels for cheap money to flow out of us into emerging markets and Asia, where the return of investments are greater. The prices of stocks also rise as a result of increase buying.
These events that happened around the world provided good lessons for me to relate with sgx and kept me looking forward to every market opening day in curiosity. Knowing that happenings around the world will affect the stock market every day will keep myself busy keeping up with the news.
I thank all readers for keeping up with my blog.
Have a great bullish day!
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ReplyDeletebefore investing. Lets see how it goes.