Those who understand the stock market know that the markets are always changing and what happened yesterday or last year, won't happen again. We can try to predict what will happen and although sometimes we can, other times, we have no idea what will happen.
2008 has been a year of the stock market correcting themselves. Of course it's happened before several times and it will happen again. What caused it to happen this time, isn't what caused it any of the other times.
In this past year we are seeing the effects from the housing boom that shouldn't have happened in the first place. People were able to get mortgages without meeting the requirements that are typically needed to purchase a home. How can we expect anything else, but a crash in the industry?
Because of the problems in the housing industry as well as the financial crisis (which is also tied to the housing boom), the stock market has taken a beaten. Many of the companies that lost nearly 50% of their market cap, wasn't because of something they did, but instead a result of the economy from the two sectors that were up to no good. Now we are all paying the price of others who were willing to do anything to make a profit or to make their bonus'.
I look forward to 2009 and the future of the stock markets. I expect good things to come out of this mess that we're experiencing. Do I expect it to happen again? The markets have always moved in a up and down motion and will continue to do so. Yes I do, but the next time it will be because of something else. Be prepared for it.
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