Mukilteo Beacon - Your Hometown News Source

The stock market and other facts of life | Off Kilter

 

Last updated 5/11/2022 at 11:55am



OK, don’t panic. Yeah, we are in the middle of a stock market correction. It may drop as low as 20% off its high from last year. Top rule of investing is: Buy low, sell high. And definitely not the opposite.

One factor in this drop is the uncertainty of our economy. While COVID created turbulence in the market (after all the economy was basically closed down for a year), at the same time, the Federal Reserve pumped trillions of dollars into the economy.

So, what happens when we have an extra amount of liquidity in the economy? Here’s what happens. People buy stocks and other stuff. That...



For access to this article please sign in or subscribe.

 

Reader Comments(0)

 
 

Our Family of Publications Includes:

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2021