Investing in the Stock Market Explained: A Guide For Beginners
Erika Taught Me
Understanding the Resilience of the Stock Market
The stock market has the resilience to recover from crashes due to several counterbalancing forces. Firstly, in tough times, weak businesses fail, allowing stronger companies to thrive. Secondly, high unemployment rates drive innovation and entrepreneurship, leading to new business practices and industries. Thirdly, during market downturns, governments intervene by providing support like cash payments, public projects, and lower interest rates. These factors combined ensure the market's ability to rebound after crises, even when recovery seems unlikely in the moment.
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