Saturday, May 06, 2006

i keep on fallin'

today witnessed the largest single day drop in the history of the saudi stock market. it bottomed out at a near 10% drop in what has been a sequence of severe corrections which have resulted in a loss of nearly half its peak value. now i'm not going into the in depth socio-economic reasons behind it (i do that for a living). but this is what i want to say..

there is always a chance when investing that you'll make or lose money. the more money you can probably make the more money you can probably lose. it's very simple, high risk means high returns and high losses. so for the people complaining about losing cash on the market, it's the nature of the beast, you should've know what you were getting into.

oh and to the ever important question, when is it going to come back up? well the answer to that, is that it still has a good ways to go down. i just hope the authorities will do the right thing and let it sort itself out and not interfere too heavily, quick solutions will just make things worse in the long run.

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