Quote:
Originally Posted by ofonzo
Investors always talk about market crash! Either when the market is very bullish (Oh!It can't sustain this trend oh  ) or when it is in correction(Ah!The skies are falling  )
I have observed that the market NSE is like a zoo, there are speculators, who drive the share prices sky high and the value investors, who take their time to value a stock's intrinsic value and take advantage when the price is right. These are the guys that SUPPORT the market price. While the Speculators drive the price to its RESISTANCE level.
There are opportunities even in a Stock Market burst as well as a Stock market Bubble. Even in a bearish US Market, Warren Buffet is the World's richest man. What would have been his value in a bullish one. Bethshire Hattaway (his holding company) has its share price plummet from $150,000 to $125,000/Share. The man is still holding on.
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Yes, there are opportunities during a stock market crash, but not for those that were heavily invested in it. The NSE today is behaving like the dot com era. At the end of the day reality overtakes fiction. I'm sure you will not buy a bottle of empty coke for N1,000. Well, that is what many folks are doing on the NSE today. Paying for something that is worthless and even fighting over it.
Now, majority of players on the NSE are just speculators looking for quick bucks. Who cares if the company has closed down or does not have a known address? I will sell to another 'mugu' once the stock price has risen by 50%.