The only way people will be losing money in the long term with investments in a bourse is if the company they have bought shares in goes bankrupt, or if they panic sell when share prices start to fall (as is the case with most people).
So if you have made a sound investment by buying shares in a company such as an oil, pharmaceutical, processing, etc company and do not require liquid money within the next 3-6 months, then just hang in there. Global Bourses will recover, Inshallah :P
Re: GLOBAL ECONOMIC RECESSION
The market will take another 2 to 3 years to recover. And all countries are affected. If western economic powers do not have money African or asian nations are affected, Africans third world countries will not get fresh loans/debts/charity and will have to keep paying their existing debt as no one will be willing to waive that money off.. dont' forget "Dont' be a doner, when you are bleeding"
Oil will go down and is going down b'cos demand will slow in recession times. World in under recession hope it does not turn into depression. Although, economists are already talking about conditions similar to Great Depression (which lasted 4-5 years and only recovered fully after 20 years and World War II)
Re: GLOBAL ECONOMIC RECESSION
I'd like to be optimistic, but i'm afraid there isn't much that can be done at this very point to regain the confidence of public at-large as well as investors worldwide. People are weary of the bottomline, so they're afraid to invest or re-invest in this case.
There is a possibility of the financial markets recovering but it will not be an overnight achievement, IF even that. Thus far it looks like a downward trend....
Re: GLOBAL ECONOMIC RECESSION
Depression is imminent no matter how you slice it. We can stay all positive and optimistic but that isn't changing the facts.
Re: GLOBAL ECONOMIC RECESSION
Financial Crisis: Countries at risk of bankruptcy from Pakistan to Baltics
Ambrose Evans-Pritchard
Telegraph
October 12, 2008
Nuclear-armed Pakistan is bleeding foreign reserves at an alarming rate leading to fears that it could default on its loans.
There are mounting fears that Ukraine, Kazakhstan, and Argentina could all now slide into a downward spiral towards bankruptcy, while western banks exposed to property bubble across Eastern Europe have seen their share price crushed.
The markets are pricing an 80pc risk that Ukraine will default, based on five-year credit default swaps (CDS) – an insurance policy on a country being able to pay its debts.
The country’s banking system has begun to break down after years of torrid credit growth; its steel mills are shutting as demand collapses; and the political crisis is going from bad to worse.
President Viktor Yushchenko dissolved parliament this week in a dispute that risks bitter conflict with the country’s Russian bloc. Diplomats fear Moscow could be drawn into the crisis – or even use it as a pretext to occupy territory in a replay of the Georgia invasion this summer.
Ukraine’s government seized Prominvestbank this week, suspending payments to creditors. It closed the Kiev stock market, which has fallen 73pc this year.
Emerging market stocks have been tumbling since their peak in October, when investors were still betting that rising stars such as the BRICs (Brazil, Russia, India, China) were now strong enough to shake off a US crisis. That illusion has been shattered.
The International Monetary Fund said it is mobilising a "rapid-fire" fund worth several hundred billion dollars to stop a domino collapse across the developing world.
The trigger for the latest round of capital flight has been the lightning implosion of Iceland. BNP Paribas warned clients yesterday that the island is heading for "sovereign default" with contagion risks for other economies that have been living beyond their means on foreign credit.
Hungary had to intervene yesterday to prop up its markets following a run on country's biggest lender OTP. The Budapest bourse fell 13pc. The treasury had to scrap a bond auction.
The most new mortgages in Hungary are in Swiss francs, leaving the homeowners facing a vicious squeeze as the forint plunges against the franc.
In Pakistan, the rupee has fallen to an all-time low. Standard & Poor's downgraded the country's sovereign debt to near write-off levels of CCC-plus. The central bank's foreign reserves have fallen to $4.7bn (£2.73billion).
"The danger of default is hovering," said Professor Kaisar Bengali from Karachi University.
"Pakistan may not be able to re-pay its debt or import anything," he said, adding that the country cannot assume that it will be bailed out for strategic reasons.
Default risk on Kazakhstan's top banks has risen to 70pc as property bubble bursts in the former Soviet republic and reliance in foreign credit comes back to haunt.
The country has mortgaged its future to oil prices, which crashed below $80 a barrel yesterday as the whole nexus of commodities (except gold) buckled in a wave of forced selling.