Market Summary 26th September
When the government raises interest rates, it usually makes companies' operating conditions tougher, and we are starting to see that now. This affects "high-yield interest rates," rates associated with higher-risk companies. They're starting to rise after being stable for months, which is a sign of increasing risk in companies.
Currently, many stocks across different sectors are experiencing a drop in value. This kind of widespread decline is what we refer to as a "downtrend," and during such times, stocks can remain undervalued for a long time.
Investing can be tricky because each phase of the market tempts you to act differently. When prices are low, it's tempting to buy, but they might fall even lower. When the market is doing well, it's easy to get overly excited and invest too much, risking loss if things turn. In unstable markets, frequent trading can result in losses, and without proper knowledge and warning, your investment can face significant risks.
The most important rule in investing is to preserve your capital, as losing it means losing the opportunity to invest again. Everyone loves to hear and tell stories of making significant returns by investing at the right time, but stories of loss and struggle due to improper investing are more common and painful.
So, when the market begins to recover, which could be at any time, it’s crucial to remember your investing rules. Having and following rules is what distinguishes professional and successful investors from amateurs and risk-takers.
Currently, many stocks across different sectors are experiencing a drop in value. This kind of widespread decline is what we refer to as a "downtrend," and during such times, stocks can remain undervalued for a long time.
Investing can be tricky because each phase of the market tempts you to act differently. When prices are low, it's tempting to buy, but they might fall even lower. When the market is doing well, it's easy to get overly excited and invest too much, risking loss if things turn. In unstable markets, frequent trading can result in losses, and without proper knowledge and warning, your investment can face significant risks.
The most important rule in investing is to preserve your capital, as losing it means losing the opportunity to invest again. Everyone loves to hear and tell stories of making significant returns by investing at the right time, but stories of loss and struggle due to improper investing are more common and painful.
So, when the market begins to recover, which could be at any time, it’s crucial to remember your investing rules. Having and following rules is what distinguishes professional and successful investors from amateurs and risk-takers.
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Eat Drink Earl Grey : This needs to be said; without a time frame, this poll is not useful. No offense intended.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
70764750 Eat Drink Earl Grey : You have your own opinion, I appreciate you
Nigel Chong 庄证评 OP : Well said
Just want to boost some engagement to the topic since many investors are fearful over the bearishness of the market
RDK79 Eat Drink Earl Grey : Agree