Dow Jones Industrial Average (2)

Dow Jones IndexWe have published several articles over the past few months refuting proclamations from experts calling for a crash, two of which are Market sell off time to panic? After two years of bitter public debate over the Watergate scandals, President Nixon bowed to pressures from the public and leaders of his party to become the first President in American history to resign. In the end, the courts might well hold that Richard Nixon had been denied due process, and the verdict of history would even more be inconclusive with respect to those charges arising out of the period of his Presidency, of which I am presently aware. As the nation watched the action live on television, officers riddled the place with bullets and it finally caught fire.

Here we list a few defining moments in American history (or herstory, as it were). This conveniently ignores that in every other country doing so, ending the practice required significant government intervention (not to mention that the free market was certainly taking its sweet time, which is less an issue if you’re an Iowa history professor and more of an issue if you’re living under the yoke). It turns out Ronald Reagan had about as much to do with the Berlin wall coming down as Jesus Jones. We have been in a secular bear market since 2000, with the Dow Jones barely level with it’s 2000 level.

Without the financial market, the fund owners could not find sufficient opportunities to invest for either short term or long term. Different sized entities participate in stock market activities, ranging from small investors to the governments, corporations, large hedge fund traders, and banks. This sector consists of the retail banks, investment banks, general and life assurance companies and other financial services companies.

In the Islamic financial system, to eliminate these wild swings in stock values and speculations, the Stock Market will have to be protected by a market stabilization fund. This fund will have a pre-emptive right to purchase a certain percentage of public equity in all companies and its main purpose will be to stabilise the market. Because they are usually supplying to the majority of their market already, these companies have low growth prospects, but instead pay a high dividend yield.Dow Jones Index

In practice, fund management groups seeking to comply with the Shari’ah adopt several criteria, and there is disagreement and debate about what approach is most appropriate. The second criterion is to consider the extent of debt-to-equity finance, a proportion in excess of one-third being unacceptable Dow Jones of DJIM Indexes advocated tighter criteria in the I990s, with a limit of 25 per cent for the debt-to-capitalization ratio, but there was no consensus on this. This means money that is over an above your emergency fund of at least six months living expenses and in money that you are not using for your retirement fund.

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