Market Variations Summary

The analysis of the present economic situation helps to detect when to invest in the stock market and when it is convenient to stop. At the moment in which you invest it is expected to be at the moment in which the markets period of expansion begins.

This usually happens when the following circumstances are given:

  • the countries economy has been on recession for several years and the thought is that it is touching bottom.                 
  • Interest rates start decreasing and being less interesting to invest in fixed interests.
  • Inflation has been controlled
  • Prices of shares are cheap, which is manifested by the different stock exchange ratios
  • The economic policies include important measures for the dynamism of the economy
  • The lack of debt payments are beginning to end and the banks are lending more easily
  • Sales of companies are starting to raise as are also the consumption and investments
  • The engines of the economy (construction, automobile, tourism and other sectors) begin to offer signs of recovering

The contrary is when the opposite situation occurs and you have to stop investing:

  • the economy has been expanding for several years and it begins to give symptoms of over heating
  • interest rates start to increase and to invest in fixed interests is beginning to be very interesting
  • inflation starts to grow and to get out of control
  • prices of the shares are more expensive, which is manifested by the several stock exchange ratios
  • .the economic policies include important measures to cool off the economy
  • the lack of debt payments begin to increase and the banks start to take measures to restrict credit
  • sales of companies begin to slow down. As does the consumption and the investments
  • the engines of the economy (construction, automobile, tourism and other sectors) begin to sign a slow down

You also have to have in mind the psychology of the investors that often have irrational behaviors.

Beginner Money Investing Analysis of the Economic Juncture & of the Moment Types of Interest Market Inflation Economic Policies Psychology of investors and other aspects that affect the stock exchange climate Market Variations Summary