Stock market markets have been in free fall since the beginning of the year.
It’s been a brutal year for stocks, with companies slashing budgets and slashing jobs to balance their books.
The Dow Jones Industrial Average fell more than 200 points over the last three weeks.
The S&P 500 fell more nearly 5% over the same period.
But now the markets seem to have recovered.
Investors are buying stocks again.
In fact, the S&P 500 is up nearly 7% in 2017.
It has recovered from a 12-month low earlier this year.
Here are the five most important things investors need to know about the stock market.
The stock market is recovering.
The economy is doing well.
The jobless rate is at a six-year low.
Investors expect the economy to grow at a 3% annual rate through 2027.
Investors have also seen the Dow Jones industrial average climb nearly 1,000 points.
And stocks are still up about 30%.
That’s good news.
But that doesn’t mean the stock markets are doing great.
In the last year, the stock economy has been hurt by two factors.
The first is that the Federal Reserve is not doing enough to support the economy.
The Fed has increased its balance sheet by $50 billion to $3.5 trillion.
It is increasing its balance sheets so that it can lend to businesses and to consumers.
The second is that there’s been less stimulus from the Federal Government.
The Federal Government has cut back on spending and has been cutting back on taxes.
That has hurt the economy, which is hurting the economy in general.
Investors think the Federal deficit will be about $1.5 billion next year.
That will be a huge blow to the economy and hurt the recovery.
That’s because the economy has to be growing to keep the Federal Debt from ballooning to $16 trillion.
That is just the beginning.
We’ll see if the Federal government can raise more revenue, but that’s a tall order.
The debt problem has been going on for a long time.
Investors need to understand the fundamentals.
There’s a lot of noise in the stock world.
Investors don’t know what to make of the markets.
It feels like the markets are in a tailspin.
There are some people who think the markets have lost their mojo.
But investors shouldn’t take their heads off the barrel.
The market is still incredibly cheap.
If you can get a bargain on a stock, it’s worth buying.
Investors should also be wary of companies that have been underperforming.
These companies have been selling more shares and buying more shares to shore up the markets and protect their stock prices.
There is plenty of evidence to suggest that the stock crash in early 2016 was mostly a mirage.
It was a wild and unpredictable time for stocks.
But the crash of 2017 is more a continuation of that.
It hasn’t been as wild as 2016, but it’s a reminder of how volatile the market has been.
Investors still need to be careful about buying too much and too little.
The markets are still very cheap, but they’re not cheap enough to buy everything.
Investors can buy shares with a low commission.
There may be a reason for this.
Most people use stock brokers to buy and sell stocks.
They use a broker to set the price of shares.
The brokers charge a fee that’s based on the size of the stock.
For example, the average broker charges $10 to $15 per share for a $50,000 purchase.
The average commission is usually about 25%.
This means that the broker charges less per share than it would if the purchase price was the same.
But it’s still a good idea to take advantage of this option.
You can buy and hold shares without paying a broker.
The commission is typically much lower, too.
You’ll get the best prices and the least risk.
Investors who use this option should pay close attention to their broker and be cautious about what they buy.
Stock market bulls are getting a lot more aggressive.
Some people are worried that investors are overreacting to the stock bust.
Some are even calling it a bubble.
But I don’t buy that argument.
It makes a lot about the quality of the analysts and their expertise.
The recent stock market bust has been an important reminder that markets aren’t stable.
Investors must keep in mind that the market is volatile.
That means that stocks can go down and still go up.
The bottom line is that when the market falls, the rest of the economy recovers.
And that means the economy will get better and better.
So don’t be alarmed if stocks are down.
And if stocks go up, be excited.