While we may hear the words “blue chip” to describe shares issued by a respected, established company, we might not exactly know what that means. Blue chip companies are those who have a track record of doing well over a long period of time and toughening it out during challenging market conditions. Advertisement Blue chip
Market falls don’t need to be small, nor are they always large and dramatic — the declines can come in mid-sized increments of between 10% to 20%, and which are also known as corrections. As former Wall Street investment analyst Joseph Houge put it to Forbes: “Say the words market correction and many investors immediately
When an economy gets “hot” — which is what happens when people have a lot of credit, a lot of extra money, or simply want to spend — businesses end up making things more expensive, either because they don’t have enough to sell, or because they feel they can get away with making more money.
Another feature that plays a role in this level of economic confidence is the fact that unemployment is typically found to be at some of its lowest rates during these types of market conditions. Unemployment, according to the Economic Policy Institute, is a good indicator of the economic direction that a nation is experiencing at