How do you have a raging economy and moribund stock market?
March 8th, 2005Good story here from the L.A. Times about China’s sluggish, moribund, faltering–I am often tempted to say failing–stock markets.
The couple described in the article say they are “trapped” in the market–they don’t want to sell because they’d lose too much, so they just keep hanging on to shares worth less now than what they paid. I wonder how many millions of traders are like this? If these people decided to cut there losses and move on, wouldn’t that depress current prices even furhter?
And if regulators see it as there job to boost prices (or at least do no harm) for people like these, will they do things good for the long term health of the market?