does the politics have a effect on the stock market?
By aringwi
@aringwi (136)
China
November 17, 2008 12:50am CST
the stock market in China is falling during the past few months.it causes a collapse among the Chinese stock holders.if something happens at home ,the holders will sell their stock in hand crazily,especially the big events take place in Chinese political field.the holders can't wait for the good news to make the market rising.
3 responses
@piasabird (1737)
• United States
17 Nov 08
Yes, absolutely! And the stock market is not happy having a socialist as president elect.
@newtondak (3946)
• United States
17 Nov 08
I agree that politics have an effect on the stock market. When something "big" is happening on the political front, we usually see a major change in the stock market.
@xfahctor (14118)
• Lancaster, New Hampshire
17 Nov 08
Absolutely it does. Events and decisions in politics effect the market greatly. Markets are based basicly on guessing and prediction. Politics, both national and world politics are one of the factors the market guru's use because different government and individual politician's policies on rules, finances etc effect different things in the market. It's all pretty complex. For simple example, lets say a politician promised to raise taxes on a particular type of investment. People who invested in that particular area may sell off knowing that they will later be taxed higher if they sell later.
