Buzzword: Market capitulation
Panic! brings us this week’s Marketplace Money Buzzword: “Market capitulation.”
In military terms, capitulation means to surrender. Market capitulation refers to a surrender… of your money!
That’s when stock prices fall so low, investors sell their stocks at any price.
This week, millions of overseas investors — spooked by a possible U.S. recession — sold off stocks fast. The global fear caused one of the most volatile weeks in history.
And although many markets made a rebound by week’s end, investors learned that sometimes, surrender doesn’t guarantee your safety.
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