The Stock Market Drop.

It is perhaps advisable for people to be long term investors in the stock market. For example, if I invest Rs 1000 in the market, and make a profit of Rs 600, perhaps I should spend the Rs 600, and reinvest the Rs 1000. The stock market drop, is not due to the financial challenges faced by the United States, but perhaps, because the stock market has become a legal means to speculate.The market is reacting exactly as it should, in India. Indian Industry should not be dazzled by the Dow Jones index. In my humble opinion, the United States economy, is working at cross purposes with herself. On one hand, the Interest rate has to be low, of the Federal Reserve, because, the exporting countries to the U S have to be paid in dollars, and it is not in the interest of the U S to have a high rate of interest. On the other hand, Th U S has to buy more from countries like China, because she does not manufacture low cost goods on a very large scale. The American economy seems to be caught in a bind. The Federal Reserve rate is also low for the reason that a large number of lenders to the American banks are big corporate houses, so it makes sense that the American lending rate is low. Another reason is that America is the land of entrepreneurs, who should be relatively safe, while borrowing for entrepreneurship. However, the Stock Market, being accessible to all, has tempted some towards reckless speculation, which in other circumstances, would be termed as gambling. This disturbing trend, should be discouraged for the good of the financial markets.