The stock market is one of the most popular ways to invest. It can also be one of the most volatile. There are many reasons why stocks can change in price, including news headlines, product inventions, political scandals, and more. As an investor, it’s important to keep up-to-date on the latest market developments. This includes keeping up with the latest news, whether it’s about your local or global economy, company earnings, or government policies that could affect your investments.
In the past, major stock market crashes have resulted in billions of dollars lost and wealth destruction on a massive scale. The crashes were often the result of a combination of events, such as a global economic recession, a financial crisis or stock market bubble. Some examples include the Great Depression, the Black Monday of 1987 and the Dotcom bubble of 2000. While most investors have never experienced a major stock market crash, they still need to be prepared for the potential of such an event.
This week, the S&P 500 rose to a new record high and the Nasdaq pushed within striking distance of its all-time peak. Investors have been buoyed by a new trade agreement with Japan and signs of progress in talks with the European Union. However, despite this optimism, analysts haven’t raised expectations for second-quarter earnings much beyond the current 5.6% growth rate. Nevertheless, many sectors have higher earnings expectations than the overall market, so next week’s outlook could be choppy.
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