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.