Thursday, July 15, 2010

Is STOCK Markets Always Go UP in long Term....Myth


IS Stocks Markets always go up in the long term. This is a myth. Far more companies have failed than succeeded. Far more countries' stock markets went to zero than markets, which have survived. Just think of Russia in 1918, all the Eastern European stock markets after 1945, Shanghai after 1949, and Egypt in 1954. Just see the graph Japanese stock Index NIKKEI have fallen to 14000 level from 40000 in last 20 years !! You need to be Vigilant or else?? Investing stock market should be based on the study of macro fundamental of the Economy ,it should not based on some vague principals .Economies performance always based on economic cycles ,horison of these cycles pretty long , U need to learn exit strategies from these markets at appropriate TIME.

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