2018 will be remembered as one of the years that the stock market prices went into its knees. This brought a lot of fear to people especially new investors. Some market analysts suspected that this occurrence happened as a result of the recent global events happening in different corners of the world. Investors in this industry started experiencing the occurrence as from mid-October.
Predicting the future of the stock market prices is not an easy thing. Most successful investors, as well as investment bankers, have ways of doing things that are actually more than their knowledge or know-how of their forebears. You know what? Stock market prices can drop drastically. According to analysts, the recent fluctuation was actually fueled by foreign as well as domestic deals.
The advancement in technology has actually changed the way the stock market runs. The old techniques have been replaced by the most recent and efficient electronic exchanges and trading. Technology-based stock exchanges have been going on without frustrations. The positive changes tend to make things simpler while making the elements of doing business harder.
One of the good things about the advancement in technology as well as its application in the stock markets has actually been program trading. This happens when computer algorithms are applied when determining when to sell and buy stocks. In the past, trained as well as seasoned stock managers used to apply their expertise and research to know when to sell and buy stock shares. The increase in artificial intelligence has actually replaced this. Program trading helps in observing the previous market trends without the human error.
The past crushes and what repaired them
The United States of America experienced the most influential as well as catastrophic crashes in the year 1929. The country had experienced huge economic growth in the previous years and the stock market crash that happened in 1929 destroyed lives. Although the stock market has been experiencing significant growth since then, crashes have also been common. However, the market has always had ways of digging their ways out of such situations. In the second day of October 1987, the stock market almost experienced an incident similar to that of 1929. In that day, the crash occurred because of a slowed down economic growth in America.
The conditions became worse after the London’s Great Storm that happened in the year 1987 as well as the sinking of two supertankers of United States by Iran. These historical events initiated fears about the economy hence the crash. However, the stock market got to where it had been before 1987 after the trading rules were changed or reformed.