Usually, HFT programs and computer trading works without a hitch. But once in a while problems do crop up. Back on Aug. 24, 2015, the United States’ three major stock indexes plunged on the open, but would recover much of their losses by midday. Among the reasons blamed for the dip were market makers and HFT traders. With so many stocks within the S&P 500 failing to open on time, and a number of exchange-traded funds under trading halts, HFTs and other high-speed traders shut down their systems, removing much-needed liquidity from the marketplace and exacerbating the early-day decline.
As longtime China watchers know, the country’s still-immature markets are in many ways more bubble-prone than their Western counterparts, thanks to heavy involvement from retail investors who often take cues from government policy, rather than quaint notions like earnings. Tanking Chinese stocks—the Shanghai Composite is now down nearly 25% from its January peak—could therefore be taken...
They are missing one imprtant thing in their analysis. This time around one can not look a historical data and charts. Market have never before been rigged like they are today. Frequency trading , shorts , naked shorts, fututres(in case of commodities it means unlimited supply of virtual goods) ETFs, etc. Never in historyhedge funds have been so sophisticated in rigging markets so none of the technical data or any fundamentals play a role over here. It's what riggers want to do ..........
Following the 55%-plunge in DHFL share price, biggest since listing, Kapil Wadhawan, CMD, DHFL said to CNBC TV18 that it is a big surprise and shock to him. We are sitting in a strong liquidity position and there is not default whatsoever, Wadhawan said. All this what we are seeing is a "panic-stricken market reaction" and the total liability position till 31 March 2018 was just Rs 4,800 crore, Wadhawan said further to CNBC TV18. At the same time, there is close to Rs 10,000 crore of liquidity available with us in the system other than collections that we accrue on a monthly basis, Wadhawan said. NPA position is strong and the asset quality is top notch, Wadhawan added. 
With a Real Wealth Strategist subscription Matt will be your guide to making the kinds of profits many investors only dream about. You’ll get access to his education and experience: Over 20 years in the natural resource industry, expertise in mining, industry and agriculture, and the chance to travel with him as he visits mines, oil projects and company headquarters, in search of the perfect investment idea. Real Wealth Strategist’s portfolio focuses on all natural resources. Essentially, if there’s a way to maximize profits, he’s going to find it and recommend it.
Mati Greenspan, an analyst with the trading platform eToro, told Business Insider on Tuesday that volumes from Japan and South Korea had been tailing off in recent days. Traders in these markets are usually buyers, and a large-scale exit could have created an imbalance in the market, with more sellers than buyers driving down prices and sparking a panic.
It's true that higher interest rates preceded the housing collapse in 2006. But that's because of the many borrowers who had interest-only loans and adjustable-rate mortgages. Unlike a conventional loan, the interest rates rise along with the fed funds rate. Many also had introductory teaser rates that reset after three years. When the Federal Reserve raised rates at the same time they reset, borrowers found they could no longer afford the payments. Home prices fell at the same time, so these mortgage-holders couldn't make the payments or sell the house.

With a Real Wealth Strategist subscription Matt will be your guide to making the kinds of profits many investors only dream about. You’ll get access to his education and experience: Over 20 years in the natural resource industry, expertise in mining, industry and agriculture, and the chance to travel with him as he visits mines, oil projects and company headquarters, in search of the perfect investment idea. Real Wealth Strategist’s portfolio focuses on all natural resources. Essentially, if there’s a way to maximize profits, he’s going to find it and recommend it.
Research at the Massachusetts Institute of Technology suggests that there is evidence the frequency of stock market crashes follows an inverse cubic power law.[15] This and other studies such as Prof. Didier Sornette's work suggest that stock market crashes are a sign of self-organized criticality in financial markets.[16] In 1963, Mandelbrot proposed that instead of following a strict random walk, stock price variations executed a Lévy flight.[17] A Lévy flight is a random walk that is occasionally disrupted by large movements. In 1995, Rosario Mantegna and Gene Stanley analyzed a million records of the S&P 500 market index, calculating the returns over a five-year period.[18] Researchers continue to study this theory, particularly using computer simulation of crowd behaviour, and the applicability of models to reproduce crash-like phenomena.
It's true that higher interest rates preceded the housing collapse in 2006. But that's because of the many borrowers who had interest-only loans and adjustable-rate mortgages. Unlike a conventional loan, the interest rates rise along with the fed funds rate. Many also had introductory teaser rates that reset after three years. When the Federal Reserve raised rates at the same time they reset, borrowers found they could no longer afford the payments. Home prices fell at the same time, so these mortgage-holders couldn't make the payments or sell the house.
It is not a big surprise, however, that many investors today remain interested in the forecasts of financial analysts regardless of their success. Humans in the past consulted oracles, crystal balls and tea leaves. It’s in our nature: As the proverb goes, “tell me a fact, and I'll learn; tell me a truth, and I’ll believe; but tell me a story and it will live in my heart forever.” We are attracted to story-telling, and when it comes to investing we seem to be searching for the most compelling narratives about the unknowable future, regardless of how accurate they turn out to be.
Although this latest round of fiscal and monetary stimulus has not had the anticipated economic effect to date, it has produced a negative effect on the Chinese yuan. Leaving some to wonder if China is finally losing control over its currency. In August 2015, an unexpected devaluation in the yuan led to a capital flight as Chinese companies, citizens and investors sought to protect themselves from further declines in the currency. If the yuan weakens too quickly again—either naturally or by another planned devaluation—this would add even more chaos to the already fragile global markets.

It was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.[1] The crash, which followed the London Stock Exchange's crash of September, signalled the beginning of the 12-year Great Depression that affected all Western industrialized countries.[2]


Free movement of people was only one aspect of why people voted to leave the eu. There is another even more pressing, that of regaining sovereignty given away by those who thought nothing of betraying it in the first place. Yes the Gov. could be brought down by the latest betrayal of sovereignty, not only the Gov but the Tory Party itself, with no chance of a come back for decades to come, if ever.

Meanwhile, research and follow the companies on your list and get to know them well. Develop a strong understanding of just how they make their money, what their sustainable competitive advantages are, what their competition looks like, what their growth potential looks like, and how financially strong they are, such as in terms of cash and debt. When the market crashes, you'll be familiar with a bunch of companies and will have a sense of which are most compelling, growing most briskly and priced attractively. Monitoring your list regularly can help you notice when a company of interest, but not the overall market, falls in price significantly, presenting a possibly great buying opportunity.
It now looks like the secular bull market in stocks is turning into a secular bear market that could last for several years if not decades. The stock market acts as a sentiment indicator for what happens in the real economy. No indicator is perfect and stock market moves will be exaggerated in both directions. It is now likely that the world is starting an economic downturn of epic proportions.
PropertyUpdate.com.au is Australia's leading property investment wealth creation website with tips, advice and strategies from leading real estate investment experts. Featuring topics like property investment, property development (helping you understand the process), negative gearing and finance (so you can borrow more from the banks), property tax (allowing you to structure for legal tax deductions and asset protections), negotiation, property management (assisting landlords and tenants understand their right responsibilities), commercial property (for experienced property investment individuals), personal development and the psychology of property investment success.
Economic effects of the September 11 attacks (2001) Stock market downturn of 2002 Chinese stock bubble of 2007 United States bear market of 2007–09 Financial crisis of 2007–08 Dubai debt standstill European debt crisis 2010 Flash Crash 2011 Tōhoku earthquake and tsunami (Aftermath) August 2011 stock markets fall 2011 Bangladesh share market scam 2015–16 Chinese stock market turbulence 2015–16 stock market crash 2016 United Kingdom EU referendum (Aftermath) 2018 Cryptocurrency crash
When you think of oil production, the Middle East or OPEC is probably what comes to mind. But substantial shale finds in the United States in recent decades have pushed the nation the No. 3 spot in terms of daily production as of 2016, according to data from the U.S. Energy Information Administration. At 8.88 million barrels of oil production per day, the U.S. is responsible for more than 10% of global production. 
It’s beyond Black Monday. The next stock market crash will combine the effects of Black Monday with the tech bubble of 1999-2000 and the recession that resulted from the crash of 2007-2008. The Shiller CAPE ratio, which measures a stock’s performance by comparing its price against earnings over a 10-year period, has reached the very point when Alan Greenspan pronounced his famous “irrational exuberance” speech. (Source: “The stock market’s valuation is back to the point where Greenspan warned of ‘irrational exuberance’,” CNBC, October 31, 2017.)
Recently, Netherlands-based “Big Four” auditor KPMG has released another bullish stance on crypto, claiming that the industry needs institutional investors’ participation in order to “realize its potential.” Earlier last week, CoinShares CSO Meltem Demirors claimed that the the recent collapse of the markets is caused by institutions“taking money off the table” due to Bitcoin Cash’s (BCH) hard fork.
Interesting points. To say a 2 billion dollar a day trade deficit is meaningless might be understating it. Running trade deficits every year is dangerous and leads to the recession you’re fearing. It’s the trade policies that make it happen. The global economy was highly dependent on US willing to run huge trade deficits and Europe and China are undergoing withdrawal problems.
It was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.[1] The crash, which followed the London Stock Exchange's crash of September, signalled the beginning of the 12-year Great Depression that affected all Western industrialized countries.[2]
At the same time, affordable housing has plummeted. In 2010, 11 percent of rental units across the country were affordable for low income households. By 2016, that had dropped to just 4 percent. The shortage is the worst in cities where home prices have soared. For example, Colorado's stock of affordable rentals fell from 32.4 percent to only 7.5 percent since 2010. 
The absurd result of valuable stocks being executed for a penny likely was attributable to the use of a practice called "stub quoting." When a market order is submitted for a stock, if available liquidity has already been taken out, the market order will seek the next available liquidity, regardless of price. When a market maker’s liquidity has been exhausted, or if it is unwilling to provide liquidity, it may at that time submit what is called a stub quote—for example, an offer to buy a given stock at a penny. A stub quote is essentially a place holder quote because that quote would never—it is thought—be reached. When a market order is seeking liquidity and the only liquidity available is a penny-priced stub quote, the market order, by its terms, will execute against the stub quote. In this respect, automated trading systems will follow their coded logic regardless of outcome, while human involvement likely would have prevented these orders from executing at absurd prices. As noted below, we are reviewing the practice of displaying stub quotes that are never intended to be executed.
The full effects of the industry crash would not be felt until 1985.[38] Despite Atari's claim of 1 million in sales of its 2600 game system that year,[39] recovery was slow. The sales of home video games had dropped from $3.2 billion in 1982[40] to $100 million in 1985.[41] Analysts doubted the long-term viability of the video game industry,[42] but following the release of the Nintendo Entertainment System, the industry began recovering, with annual sales exceeding $2.3 billion by 1988, with 70% of the market dominated by Nintendo.[43] In 1986, Nintendo president Hiroshi Yamauchi noted that "Atari collapsed because they gave too much freedom to third-party developers and the market was swamped with rubbish games". In response, Nintendo limited the number of titles that third-party developers could release for their system each year, and promoted its "Seal of Quality", which it allowed to be used on games and peripherals by publishers that met Nintendo's quality standards.[44]
Thus, Buffett has not said anything specific to the effect of “the stock market will crash in 2018.” He doesn’t have to make any such statement. An expert prediction is just that: a prediction. The smarter the expert, the less tendency there is to trust forecasts and prophecies. But if you use the expert prediction as a guide to understand what’s happening, you can detect trends. Thus, you can prepare and take appropriate actions that will not leave you stranded. If the negative predictions do materialize, you can take comfort in the fact you were ready. If they don’t, you can enjoy the favorable outcome with everyone else.
In other words, bear markets are part of investing. You can’t avoid them – but you can make sure a bear market doesn’t wipe you out. Rule number one is to diversify, and periodically rebalance your portfolio. When a correction, stock market crash or bear market comes along, the stocks that fall the most are those that are trading at the highest valuations, those with the most debt, and those with the lowest margins.
Daisy Luther is the author of The Pantry Primer: A Prepper’s Guide To Whole Food on a Half Price Budget.  Her website, The Organic Prepper, offers information on healthy prepping, including premium nutritional choices, general wellness and non-tech solutions. You can follow Daisy on Facebook and Twitter, and you can email her at daisy@theorganicprepper.ca
The affordability index continues to be stacked against potential home buyers. As housing and rental prices steadily increase, wages continue to stay relatively stagnant. Historically, the average income-to-housing cost ratio in the U.S. has hovered near 30 percent, but in some metro areas, that number is currently closer to 40 and even 50 percent! This strips away the opportunity to save money as a significant portion of a person’s monthly income is going to keeping a roof over their head.

Even though the financial crisis was resolved by the start of 2009 the housing market continued to decline throughout 2009. There were over 3 million foreclosure filings for 2009. Unemployment rose to over 10% and the housing market crash created the worst recession since the early 1980’s. By the 4th quarter of 2009, the U.S. has experienced significant GDP growth and corporate earnings had increased by over 100%. The Unemployment Rate had stabilized towards the end of 2009. By 2010 housing prices still haven’t gone up and we are still working on a surplus of housing inventory.
U.S. stock futures rise sharply, with Wall Street getting a lift from a record Black Friday spending weekend and as oil prices rebound; Cyber Monday is expected to bring in $7.8 billion in sales, according to Adobe Analytics; Mitsubishi Motors dismisses Carlos Ghosn as chairman; General Motors plans to close all operations in Oshawa, Ontario, says a report.
Following the 55%-plunge in DHFL share price, biggest since listing, Kapil Wadhawan, CMD, DHFL said to CNBC TV18 that it is a big surprise and shock to him. We are sitting in a strong liquidity position and there is not default whatsoever, Wadhawan said. All this what we are seeing is a "panic-stricken market reaction" and the total liability position till 31 March 2018 was just Rs 4,800 crore, Wadhawan said further to CNBC TV18. At the same time, there is close to Rs 10,000 crore of liquidity available with us in the system other than collections that we accrue on a monthly basis, Wadhawan said. NPA position is strong and the asset quality is top notch, Wadhawan added. 
So, the way to prepare for a market crash is not necessarily to artfully predict in advance, and step aside when the crash comes. That's virtually impossible. Rather, it can be useful to consider your overall investment strategy ahead of time, so that you know you could stomach the next inevitable crash when it comes. Ideally, through proper diversification and forethought you'll have an investment approach that will enable you to ride out a crash, rather than turning you into another panicked seller. If you only act on these issues when the crash comes, it will likely be too late.
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