Are We Over Dependent On The Stock Market?

Discussion in 'General Trading Discussion' started by gowiththeflow, Dec 4, 2018.

  1. gowiththeflow

    gowiththeflow Senior Investor

    Joined:
    Jul 2017
    Posts:
    721
    Likes Received:
    8
    When you consider pension funds, company finance, government finance and many other issues revolve around the stock market and money markets, are we over dependent on stock markets?
     
  2. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,327
    Likes Received:
    20
    The stockmarket is the key to everything, fund raisings, takeovers, equity finance, etc. When the markets struggle there is a knock on effect to economies - just look back at some of the crashes in the past. Pension funds, company liquidity and much more also depend on the stock market. A perfect point in question, the securitizing of sub-prime mortgage loans back in 2008 which eventually led to the worldwide economic crash.
     
  3. fxstreet

    fxstreet Senior Investor

    Joined:
    Nov 2017
    Posts:
    54
    Likes Received:
    0
    I think there are no two ways about this. Every big company has tied their future around the stock market, which is why a crash will affect everything. There is no choice here.
     
Tags:

Share This Page