Will the stock markets be back to normal?

Question

In my opinion i think no, how about you?

Answer 1

I think yes.  You should really back up your answer, iwould like to see why you think no, but heres my input:

Officially, we are not in a recesion, until the GDP  drops for 2 consecutive quarters, but many people believe we are in a huge slump or even a recession(unofficialy).  I believe this aswell, however, i dont think its anything we cant handle.  The government is working to restore the banks, especially Freddie Mac and Fannie Mae.  They will not, by any means let these people go under because they are too precious to the us economy and would end up hurting us if they did.  If something really did happen to them, the feds would essentially create money out of thin air and infuse money into them.  The price of oil has spiked, however its letting up a little bit, but no one knows for sure if the buble has burst yet.  The housing slump keeps worsening, which not only contributes to the banks huge write offs, but also housing sector is slumping, not to even mention all the layoffs, and job declines that are happening, and corporations/plants shutting down, and of course inflation/stagflation and falling dollar.

That being said, i do believe we will get out of all of this, and i dont think the severity will be anywhere near that of the crash in the 40's, or even the 87' crash, but i do believe there are more bad things to come, and that its not over.  

I think we will be out of the whole mess (excluding housing slump) by 2009, maybe 2010 tops.  Housing market i will say 2012, but its hard to say.

P.S. you are very broud on your question, but if you look at the market..so far has there ever been a time where we havent recovered?  The stock market trends show that no matter how much the stocks have declined in a given time frame, they always seem to rebound back up and up over the years and years.

Answer 2

Define normal ? what is not normal about them right now ?

Answer 3

I don't understand what you mean by normal? Normal is moving up and down like it is doing. Abnormal is the way it moved for the past few years, up, up, up and up.

Answer 4

History usually repeats itself.

Many times this has happened (it not always exactly the same) and many (from experience) make money from it.

If, you not know, now the time to watch and learn. Then the next time it happen you can remember history and make it work for you. ;-)

Why did people buy Google (GOOG) when it went public and paid a hefty $80 +/- per share? Because they knew what Yahoo had done when it went public. Simple history, but, we have to live it, to remember it. I not know what happened back in the 1960's, but, I bet there some old schools now using that knowledge today to work for them.

Answer 5

What is "normal"?  Markets always change.