As wages go up people can buy more and as the economy falls people can buy less.
A stock goes up in price and as demand goes down so does the stock price.
Usually stock brokers always say to hang on don’t sell and buy more stocks at a cheaper rate so when it goes up then you make more money,
The problem the investor has is that when the price of the stock goes down the company might go into bankruptcy protection.
A perfect example is Canwest a media giant went for bankruptcy protection ant the investors lost big time.
Anybody that owns stock these days has to look at their portfolio and look at the market and see if they can predict a future and the stock broker cannot be trusted because they will always say to hang on until it’s too late then they might tell you to sell.
Thanks to the Internet there is a lot of web sites make your research easier.
If you have stocks that are losing money it is better to get rid of them at loss than keeping them and you lose all your money.
Always read the quarterly company reports and if negative signs start popping up then consider dumping it.
If dividends are reduced or cut it’s time to let it go.
We have to remember that this is our money that will take care of us when we are old but you have to protect it now
