So take this time to go over your holdings and tally up how much you have in stocks and how much in bonds. If you're not sure of the asset make-up in some of your investments — which may be the case if you own funds that invest in a combination of stocks and bonds — plug the names or ticker symbols of your funds into Morningstar's Instant X-Ray tool, and you'll see how your portfolio overall is divvied up between stocks, bonds and cash.
Market crashes present great shopping opportunities for those who are ready for them. Consulting your trusty watch list, you'll be reminded of all the stocks you're interested in buying, and you can see how far they've fallen, too. You're likely to run across some other stocks to consider, also, when reading, watching, or listening to financial media.
Hi Claudette, Yes, Ford’s in but he didn’t say what he would do. Everyone was so desperate to get rid of Wynne they didn’t bother asking. Until he says something, we don’t know. He’s still small patatos compared to Trump and the cancelled NAFTA. I guess the question is, can he do anything about fast rising unemployment, interest rates, and no export markets?
In 1982, a price war began between Commodore and Texas Instruments, and home computers became as inexpensive as video-game consoles; after Commodore cut the retail price of the 64 to $300 in June 1983 some stores began selling it for as little as $199. Dan Gutman, founder in 1982 of Video Games Player magazine, recalled in 1987 that "As the first wave of the personal computer boom started, the video games market began to taper off. People asked themselves, 'Why should I buy a video game system when I can buy a computer that will play games and do so much more?'" The Boston Phoenix stated in September 1983 about the cancellation of the Intellivision III, "Who was going to pay $200-plus for a machine that could only play games?" Commodore explicitly targeted video game players. Spokesman William Shatner asked in VIC-20 commercials "Why buy just a video game from Atari or Intellivision?", stating that "unlike games, it has a real computer keyboard" yet "plays great games too". The company offered competitive upgrades, where rival systems could be traded for a discount toward the purchase of a Commodore 64. Commodore's ownership of chip fabricator MOS Technology allowed manufacture of integrated circuits in-house, so the VIC-20 and C64 sold for much lower prices than competing home computers.
By the end of October, stock markets had fallen in Hong Kong (45.5%), Australia (41.8%), Spain (31%), the United Kingdom (26.45%), the United States (22.68%) and Canada (22.5%). New Zealand's market was hit especially hard, falling about 60% from its 1987 peak, and would take several years to recover. The damage to the New Zealand economy was compounded by high exchange rates and the Reserve Bank of New Zealand's refusal to loosen monetary policy in response to the crisis, in contrast to countries such as West Germany, Japan and the United States, whose banks increased short-term liquidity to forestall recession and would experience economic growth in the following 2–3 years.
There are other mitigating factors too such as the strengths in the economy, foreign investors buying property, and rising optimism and confidence since Donald Trump won the election. At this point, we’re wondering if Obama and Clinton are relieved not to have to face the mess they created? Trump seems to be up to the task and yet, he has purportedly said he would enjoy watching the crash, even if it takes down some of his real estate empire. Is this just a comment on high home prices?
Thank you Andrea, you’re welcome! Amazing, and a beautfiul area to live. I’d like to drill down into all the LA communities. Incredible that your home appreciated that much over 2 years. Could you get a quote on the rental income upgrade and compare ROI? Are there local restrictions? I think selling is the right move for most, even if you don’t have an idea of where to move to right now. I guess it depends on your financial status and whether you need your jobs and whether you can take a sabbatical. If you hold on for the time it takes to the convert the garage, you could earn another 100k? The demand for rentals is expected to persist. A lot of buyers will like that separate living space even if they don’t rent it out. Are the rentals you could live with reasonably priced in your area of South Bay or will you have to do the long commute?
Note: The statements and information presented in this post is not intended as professional investment advice. It is solely an exploration of stock investing and the risks, perils, and behavior of stock markets and the economy. No one should rely on a single source of information or a single stock market and investing professional’s advice. The overall message of the post might be to diversify stock, real estate, and cash/gold holdings as a hedge against stock market crashes. Investors should look into hedging strategies but be aware that even hedging may provide limited protection from a crash.
October 2018 is turning out to be a lot like October 2008. The S&P 500 has now fallen for 12 of the last 14 trading days, and it is on pace for its worst October since the last financial crisis. But the U.S. is actually in much better shape than the rest of the world at this point. Even though they have fallen precipitously in recent days, U.S. stocks are still up 3 percent for the year overall. On the other hand, global stocks (excluding the U.S.) are now down more than 10 percent for the year, and they are down more than 15 percent from the peak of the market in January. All it is going to take is a couple more really bad trading sessions to push global stocks into bear market territory.
In 1907 and in 1908, the NYSE fell by nearly 50% due to a variety of factors, led by the manipulation of copper stocks by the Knickerbocker company. Shares of United Copper rose gradually up to October, and thereafter crashed, leading to panic. A number of investment trusts and banks that had invested their money in the stock market fell and started to close down. Further bank runs were prevented due to the intervention of J.P.Morgan. The panic continued to 1908 finally and led to the formation of the Federal reserve in 1913.
Scenario: Big money chases few homes, and when governments persist in stopping or not supporting land development, speculators become more confident prices will rise further. Then a politician or FED president steps in with their reactive solution, at the end of the business cycle where employment and profits will begin to drop. Speculators/investors pull out fast, and the slide begins.
I don’t know this much, if the grid is taken down, dileberately or not, once it goes down, it will trigger according to my scientits friend, The One Second After event. It will be like what i just posted. He said that this book, One second After is the actual research done on the effects of EMP and what to expect if the grid goes down. So we need to be ready. Any one without food and water is completely screwed. If the stock market is crashing right now, and we know it’s and engineered crahs involving Russia, China, and the US cabal, then we need to get ready.
The second biggest crash in global markets occurred in 2008. It was preceded by a housing market crash which led two Wall Street banks, Bear Stearns and Lehman Brothers declaring bankruptcy. By 2008 the world economy was so interconnected that the market crash led to a global financial crisis. Although it wasn’t the largest crash in percentage terms, it was the largest drop in terms of value in the history of the New York Stock Exchange.
Though, again, that may be generally true, at times of severe market moves, surprisingly, often there is very little new news to justify the price change. Research on what moves stock prices, has found that prices can often move a lot without news. Also, in his book Irrational Exuberance, Robert Shiller finds that one of the biggest stock market moves of all time, 1987's Black Monday decline wasn't driven by any obvious economic event. Therefore, it's not clear that market crashes are the result of some unanticipated bad news that shocks investors.
If you break up the components of the correction, the entire fall was concentrated in financials and other sectors where there are valuation concerns. Even within the large cap space, the correction was sharpest in stocks like Kotak Bank, Adani Ports, Bajaj Finserv, Bajaj Finance etc where there already are valuation concerns. The basket selling was largely restricted to stocks like Yes Bank, Indiabulls and DHFL, which were in the news as well as stocks where valuation concerns have been around for quite some time.
In Southern California, the pacific rim money has driven the market to a dark place. Dark in the sense that to afford an “average” home you need a household income of $170k annually and that has increased the number of people living in newly purchased homes. Chinese millionaires are dominating the market and the middle class citizens are living paycheck to paycheck or leaving California for better quality of life.