Stock Market Big Drop

I always react very slowly to what is happening in stock market in China.

Recently, the big drop of Shanghai Stock is also crazy (like that crazy and more crazy increase before).

After I reported the increase from 998.23 in June 2005 to 4040 in May 2007, and more than 6000 in 2008, it gets back to something around 2800 these days.

I am not involved in the stock market this time. People say, there is bubble in China, and there are always people believe: This is China, so economic rules do not apply.

Well. Even western rules do not apply, there must be some rules that works…

18 thoughts on “Stock Market Big Drop

  1. Jianshuo,

    I think the economy rule still applies here: there is a bubble, and there is a bubble bust :-)

    Seriously, I felt the Shanghai composite index and some stocks are at attractive level for long term (patient) investors. By “long term” I mean a year or more. I understand for some people a week is long term…

  2. You mean bubbles burst? I thought it just keeps getting bigger and bigger.

    In my books, a long term investment is something I do not ever intend to sell.

  3. We are obviously going through some very troubling economic times starting with 1) the sub-prime mortgage debacle 2) extradordinary high gasoline and fuel prices 3) a housing market which has in many respects collapsed 4) diminished consumer confidence and the list goes on.

  4. Different rule fit for different industry situation and stock market. Execute a solution is not difficult, but discovering the real rule behind is the most difficult.

  5. Off Topic:

    Is the statement below really true?

    There is a way to tell if someone has blocked you on MSN.

    Go to Tools

    Options

    Privacy

    then right click on the names in your allow list. If the option to delete is available then they have blocked you. If not they haven’t.

  6. Off Topic:

    Is the statement below really true?

    There is a way to tell if someone has blocked you on MSN.

    Go to Tools

    Options

    Privacy

    then right click on the names in your allow list. If the option to delete is available then they have blocked you. If not they haven’t.

  7. Scribe, it’s the other way around. If the option to delete is available then they have NOT blocked you. The converse is not true.

  8. The truth is that there are always some bubbles somewhere. While some are bursting, the others are being built up. It all depends on where the money goes…

  9. I think the blog is charming beause it always describes the facts and topics which may cause comments from readers, some blog writers may also be good at English but they might not be able to attract so many people to comment, is it the successful secret of your blog?

  10. Hi,

    It’s a well know fact that stock market is affected by elections and now Election 2009 are about to begin in some time so for sure they will also have some sort of impact on Indian stock market.

    One can find complete report on Impact of elections on stock market

    Apart from Elections another major concern for Indian stock market is Inflation. There was a time when we were concerned about rising inflation but now we are conscious about this falling inflation.

    So big question is what should day traders and investors do?

    Frankly speaking day traders are least concerned about the market they simply follow trend and make maximum out of it. But yes investors should keep there portfolio light till the elections get over.

    Please feel free to contact us for any query.

    Regards

    SHARETIPSINFO TEAM

  11. Four Golden Rules of Stock Market Investing

    If you thought that investing in the stock market is very difficult then you need to rethink as it is not too complex as you think. It does require some home work before investing in the stock market but it gives you really good and fruitful results when you invest in the right stocks. You should learn the four golden rules of stock market investing that are very important to understand the stock market. Well you should keep in mind that you should never let your cash invested in the wrong stocks. After all it is your hard earned money and you should never let go your money into the wrong hands. So let us have a look at the golden rules.

    1) Make a good research

    Prior to making your money invested in the stock market, you should keep in mind that you make a good research on the stocks of a particular company. Even if you wish to go for online trading you need to research on the website so that you are not fooled by the different websites. You should know that there are many fraudulent websites that tends to fool the visitors to their websites. They make some fraud techniques like taking into account all the details of the bank or the credit card numbers. You would find that you have been robbed off your money that makes you go penniless. This should be very carefully handled when you go for buying or selling your stocks online. You should also try to understand the different useful concepts like NSE, NASDAQ, BSE…etc that are very important to understand the working of the market.

    2) Gain good confidence

    It is very important that you develop some good confidence so that you can become successful in making good income out of your investment. There are some people who lose all their hopes after losing quite a lot of money in the market. So stock market is not for them. You should try to face the reality and make a good interpretation of the market so that you can get good money from the money that you have invested in the share market. You should also try to get the best advice from an experienced person who would be able to guide you in order to get the maximum returns from your investment. You should never go for investing any money that you are not quite sure about its results. So you need to stop worrying and make the best effort in order to get good financial returns. When you gain good confidence you would be able to lay the foundations of your future financial returns.

    3) Look for the right broker

    If you are not really sure where to invest and when to invest then you need to find the right broker for you who would be able to guide you in order to get the right track. The broker would be able to make you the correct choice where you can be benefited from the market from the hard earned money that you have invested. There are also some brokers that charges high commissions and so you need to discuss these things with the broker prior to appointing the one for you. When you get the right broker you would not have to worry at all about losing your money in the stock market.

    4) Stay yourself updated

    You need to stay yourself updated on the latest scenario of the stock market. You can go for watching business and stock news and also read books on stock market. This would help you to stay updated and also help you to understand much about the stock market. You should remain quite abreast of the latest happenings in the stock market.

    Well these are the four golden rules of stock market investing. But you need to understand that there are other rules too that go hand in hand while investing in the stock market. Remember that it all depends on your knowledge of the stock market and also your research on how you can go for investing in the right and the best stocks.

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