Is the decline in the stock market due to investors using money for other means?
Answers: There are actually a number of factors that investors consider when investing in the stock market, and whether to buy, sell or hold current stocks.
the main driving factors in the current decline (I believe) are as follows
1. The Housing Market
housing starts are a prime economic indicator, and those have been falling steadily over the last 2 years. Current housing starts are probably 1/4 what they were 2 years ago. I work in this field and I know there is a tremendous slump.
The value of current homes are also falling. I read an Associated Press article about 2 years ago, I actually did a paper for my economics class on the subject, but about 2 years ago, the value of existing homes also began to fall...and have fallen incrementally over the last several months.
2 The Subprime Disaster
many lenders were lending money to people in the subprime category, and just to get them qualified they were doing non-traditional loans like ARMS, these are adjsutable rate mortgages which remain stable for a while the adjsut. Millions of those people are losing their homes. There are excess foreclosures on the market, lending institutions are losing money, hence their stock is going down. many lenders have gone bankrupt because of this.
3. Unemplyment is Rising
there have been major layoffs in the building and mortgage industries among others, unemployment is also an economic indicator, and when unemployment goes up, chances are good that a recession will folllow.
its the threat of a recession that has investors worried, the last recession was in 2001 and lasted for about 6 months or so, many experts feel that if we go into a recession with the way things are right now, its not going to be an easy fix or a short term thing.
When all of these factors are combined it spells major trouble for the stock market, and the economy.
hope this helps
from 15 years of professional trader in the stock markets i will show you a few more reasons:
Since 2003 war in Iraq the stock market is rising, we know about the bubble in the real estate for 2 years but it happen now why ?
1. there is no more money to invest after people lost in real estate.
2. Stocks become very expensive compare to their profits.
3. End of a business cycle
4. fear and greed running the markets (now its fear)
stocks go down for two reasons,, either people are selling lots of stocks and there arent many buyers or there arent enough buyers when a few people want to sell.. there doesnt necesarrily have to be people putting money other place,, but that is usually the case because most large investors want their money to be somewhere,, if you are looking for some good articles on investing and how things work on wall street you should check out www.thewallstreethunter.com they have some pretty good market update articles that are really good,,
Good luck
No.
If you compare the let go of municipal bond beside?
If you compare the yield of a municipal bond near that of a treasury bond,what is the equivalent before-tax yield of a municipal bond yielding6% per year for an investor surrounded by 25%tax bracket?Answers: Tax adjusted abandon is:
tax free yield/(1-tax rate)
.06/(1-.25) = your answer*100 = due adjusted % concede
Can you be more specific please ?
i am not familiar next to your tax regulations but surrender depend on credit rating so every municipal rated different so their spread from gov bonds depends on their rating
World top 10 millinores and property value how much ?
Answers: 1 William Gates III United States 56.0 BILION US $
2 Warren Buffett United States 52.0 billon US $
3 Carlos Slim Helu Mexico 49.0 billion US $
4 Ingvar Kamprad & family Sweden 33.0 billion US $
5 Lakshmi Mittal India 32.0 billion US$
6 Sheldon Adelson United States 26.5 billion US$
7 Bernard Arnault France 26.0 BILLION US$
8 Amancio Ortega Spain 24.0 billion US $
9 Li Ka-shing Hong Kong 23.0 BILLION US $
10 David Thomson & family Canada 22.0 BILLION US $
Not millionares, millionares are nothing any more. There are plenty of billionares now. Some people like Bill Gates and Warren Buffett are near the top, along with kings/sultans from foreign countries.
All of them have more than $20 billion guaranteed.