Stock market performance
Until recently, stock market performance in the 2000s had been generally healthy compared to the 1990s. However, following problems in the global economy, current stock market performance is experiencing a period of volatility unlike anything seen since 1929. Although an implication of the current credit crunch, stock market performance does not necessarily indicate the economic situation, as it is mostly influenced by confidence.
What are the implications?
- Individual savings and investments relying on the stock market are affected.
- Private pensions and pension funds will suffer with a drop.
- Organisations offering final salary pensions will suffer as people retire and they have to make up the shortfall in pensions.
- Many trusts and grant foundations funds are based on stock-market investment, so money available will vacillate with the changing market.
- As financial institutes struggle to survive and people are made redundant, employee volunteering will decrease, although individual volunteering may rise.
- Consumer confidence is affected; paralleling rises and falls in the stock market.
- Opportunities for investment exist for those with some spare capital.
Moving forward
This driver is a stub and will be completed soon. Here we will explore the potential impact of the driver on VCOs
Want to know more?
How falling stock markets affect you
Published by: BBC news
Date:2003
Format:Web
What is it? A summary of how falling stock markets affect individuals.
How useful is this? Useful for those wanting to know more about the implications for individuals of falls in the stock market. It sums up arguments that some may use as to why the stock market is irrelevant to them, and illustrates how this is not the case.
Other comments:
Determinants of Stock Market Volatility and Risk Premia
Published by: Stanford University
Date: 2003
Format: PDF
What is it? An academic paper discussing what causes volatility in the markets.
How useful is this? Once you get over the academic style, this paper offers an interesting discussion into the causes of stock market volatility, using economic forecasting tools to predict outcomes. Useful for those who want to know more about why markets change rather than the effects of these changes.
Other comments:
Discuss
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