Currently, the U.S. stock market is in the midst of one of the longest bull markets in its history. Since bottoming out in March 2009, the broad-based S&P 500 (INDEX: ^GSPC), led by a strong rally in technology stocks and other growth industries, has surged by more than 325%! Mind you, the stock market has historically returned 7% a year, inclusive of dividend reinvestment and adjusted for inflation. So, to say that things are going well right now would be an understatement.
After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. Overall, however, prices continued to drop as the United States slumped into the Great Depression, and by 1932 stocks were worth only about 20 percent of their value in the summer of 1929. The stock market crash of 1929 was not the sole cause of the Great Depression, but it did act to accelerate the global economic collapse of which it was also a symptom. By 1933, nearly half of America’s banks had failed, and unemployment was approaching 15 million people, or 30 percent of the workforce.
It’s surprising how unruffled homeowner’s were in the GTA during the trade negotiations, however if you check out the city prices of each city below you can see who was panicking. Aurora, where Magna auto parts is headquartered saw detached home prices plummet $173,000 last month. In one month, in Toronto central where homes are most expensive, we saw an uncharacteristic drop of $111,000. Other districts saw rises so it could be those sellers bought in less expensive areas. See the district stats chart.
Note that the source of increasing "order flow toxicity" on May 6, 2010, is not determined in Easley, Lopez de Prado, and O'Hara's 2011 publication.[50] Whether a dominant source of toxic order flow on May 6, 2010, was from firms representing public investors or whether a dominant source was intermediary or other proprietary traders could have a significant effect on regulatory proposals put forward to prevent another Flash Crash. According to Bloomberg, the VPIN metric is the subject of a pending patent application filed by the paper's three authors, Maureen O'Hara and David Easley of Cornell University, and Marcos Lopez de Prado, of Tudor Investment Corporation.[58]
Over time, we can correlate historical trends in the stock market to the global business cycle. When times are good, stocks as a whole tend to go up—bull markets. When times are bad, stocks as a whole tend to go down—bear markets. This doesn't predict the behavior of any individual company's stock over time, however, nor does it suggest what any stock will do on any given day.
In Australia, ABS data confirmed that home prices fell again in the June quarter, skilled vacancies rose slightly and population growth remained strong in the March quarter. In terms of house prices, our assessment remains that the combination of tighter bank lending standards, rising supply, poor affordability and falling capital growth expectations point to more falls ahead, with Melbourne and Sydney likely to see top to bottom home price falls of around 15% out to 2020.
Share Market Live: Indian stock markets (Sensex and Nifty) closed lower on Friday facing a knee-jerk reaction in the intraday deals with Sensex closing 280 points lower and Nifty slipping below 11,150. During the day, a market-wide sell-off was seen in stocks with the benchmark Sensex plummetting 1,128 points and Nifty tripping below 10,900. Shares of Yes Bank, collapsed 34% intraday, settled down 29% while DHFL shares ended down 42% after nosediving 60% intraday.
Evan of My Journey to Millions took the conversation back to the bigger picture with your investing goals and, “I honestly do not think you can protect against a stock market crash, and that’s okay! Make sure your risk tolerance matches your asset allocation and ride it out knowing that you should have time to let it all work itself out.  It is unlikely that the next crash is going to be the one that destroys our market system.”

But a substantial minority of us have shares. According to a study by the ASX, 31 per cent of Aussies owned shares in 2017. That’s millions of people who watch Alan Kohler do the Finance news each night with a knot in their stomach. Are they a bit more tight-fisted if the finance news is bad? Some will be, especially if they are close to retirement.
Yes Bank share price on NSE fell as much as 31.7% to Rs 218.1, their steepest percentage plunge since January 2008, after the Reserve Bank of India asked CEO and MD Rana Kapoor asked to leave. According to a Reuters report, Jefferies has said that it does not subscribe to the view that without Kapoor there is no future for this systemically large bank, or that its financials have been cooked up. Yes Bank shareholders voted in June to extend Kapoor's term for three years, pending approval from the RBI. Earlier this week, late on Wednesday, the Reserve Bank of India (RBI) allowed Rana Kapoor to continue as CEO & MD till 31 January 2019.
The market could collapse if the yield curve on U.S. Treasury notes became inverted. That's when the interest rates for short-term Treasurys become higher than long-term yields. Normal short-term yields are lower because investors don't require a high return to invest for less than a year. When that inverts, it means investors think the short-term is riskier than the long-term. That would play havoc with the mortgage market and signal a recession. The yield curve inverted before the recessions of 2008, 2000, 1991, and 1981.
These bold plans have led the rating agency Moody’s to downgrade Italy’s sovereign debt to one notch above junk.  Uncertainty in Italy is a major geopolitical factor weighing on global sentiment.  Investors are rightly concerned about the Rome-Brussels stand-off, given that Italy is the Eurozone’s third-largest economy and its debt is held by every major bank in Europe—and most in the U.S. As interest rates rise in Italy, the prospect of insolvency rises alongside.
After Black Monday, regulators overhauled trade-clearing protocols to bring uniformity to all prominent market products. They also developed new rules, known as "trading curbs" or colloquially as circuit breakers, allowing exchanges to temporarily halt trading in instances of exceptionally large price declines in some indexes; for instance, the DJIA.[15]
On May 6, the markets only broke trades that were more than 60 percent away from the reference price in a process that was not transparent to market participants. A list of 'winners' and 'losers' created by this arbitrary measure has never been made public. By establishing clear and transparent standards for breaking erroneous trades, the new rules should help provide certainty in advance as to which trades will be broken, and allow market participants to better manage their risks.[80]

Until 1982, few third-party console games existed other than Activision's. Imagic and Games by Apollo demonstrated their own 2600 cartridges in January 1982, and Coleco announced several 2600 and Intellivision games. Parker Brothers, CBS Video Games, and Mattel also announced 2600 cartridges at the February Toy Fair, and Coleco announced the ColecoVision. At the Summer 1982 Consumer Electronics Show, 17 companies including MCA Inc. and Fox Video Games announced 90 new Atari games.[25] By 1983, an estimated 100 companies were vying to get a foothold in the video game market.[4]


It’s also in Christian and Western history. Originally the Jews cornered the market on charging interest on loans and their successful business innovation of making loans for profit is what has led to capitalist growth and the lifting of billions from poverty and starvation globally. Interest isn’t greed, its the time value of money. And modern “targeted” interest rates in the U.S. and elsewhere are government-subsidized giveaways to whomever can qualify for them.
One disconcerting aspect is that large avalanches, epic earthquakes or giant forest fires do not seem to be very special: They appear to be just less frequent, scaled-up versions of small ones. If this is true, then a stock market crash may not be special at all, but merely a larger-than-usual down day, and just as unpredictable. This would present a big challenge to traditional investment methods.

Large directional bets: Regulators say a large E-Mini S&P 500 seller set off a chain of events triggering the Flash Crash, but did not identify the firm.[23][24][25][26] Earlier, some investigators suggested that a large purchase of put options on the S&P 500 index by the hedge fund Universa Investments shortly before the crash may have been among the primary causes.[33][34] Other reports have speculated that the event may have been triggered by a single sale of 75,000 E-Mini S&P 500 contracts valued at around $4 billion by the Overland Park, Kansas firm Waddell & Reed on the Chicago Mercantile Exchange.[35] Others suspect a movement in the U.S. Dollar to Japanese yen exchange rate.[36]


I live in a housing bubble market with everyone attempting to buy at sky high prices. I bought 4.5 years ago, and am looking at selling for over a 100% gain in that amount of time. Yes attempting to sit on the sidelines waiting for the market to change may not seem the best, but rather than being intent on jumping back into the poker game because you like the action, take your earnings off the table. Markets can remain irrational for exuberant amounts of time, but you have to weigh it out. At the moment a 30% retrace would mean I lose $140,000 worth of equity currently available. I’ll rather that liquidity in the bank any day over paying the mortgage of an asset still owned by a lender, which to me is a liability.
To avoid losing too much in a market crash, investors should lower their stock allocations when prices get insanely high (like they are today!). It’s not a good idea to get out of stocks entirely because it is not possible say precisely when a crash will come. But it makes all the sense in the world to lower one’s stock allocation a bit because all lasting crashes take place starting from high prices.
The major factors that drive housing demand growth to Toronto: immigrant investors, better economy, low interest rates, increasing numbers of buyers in their home home buying years (millennials), and optimism all look on the upswing.  As mentioned in the Los Angeles Real Estate and US housing crash post, orecast post, here are the key factors that affect home prices:
Impact of high frequency traders: Regulators found that high frequency traders exacerbated price declines. Regulators determined that high frequency traders sold aggressively to eliminate their positions and withdrew from the markets in the face of uncertainty.[23][24][25][26] A July 2011 report by the International Organization of Securities Commissions (IOSCO), an international body of securities regulators, concluded that while "algorithms and HFT technology have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor".[27][28] Other theories postulate that the actions of high frequency traders (HFTs) were the underlying cause of the flash crash. One hypothesis, based on the analysis of bid-ask data by Nanex, LLC, is that HFTs send non-executable orders (orders that are outside the bid-ask spread) to exchanges in batches. Though the purpose of these orders is unknown, some experts speculate that their purpose is to increase noise, clog exchanges, and outwit competitors.[29] However, other experts believe that deliberate market manipulation is unlikely because there is no practical way in which the HFTs can profit from these orders, and it is more likely that these orders are designed to test latency times and to detect early price trends.[30] Whatever the reasons behind the possible existence of these orders, this theory postulates that they exacerbated the crash by overloading the exchanges on May 6.[29][30] On September 3, 2010, the regulators probing the crash concluded: "that quote-stuffing—placing and then almost immediately cancelling large numbers of rapid-fire orders to buy or sell stocks—was not a 'major factor' in the turmoil".[31] Some have put forth the theory that high-frequency trading was actually a major factor in minimizing and reversing the flash crash.[32]
There are limits to examining historical data too. Nassim Taleb cites the error of believing that the highest mountain you’ve seen is the tallest. It’s far more likely that the tallest mountain is one you haven’t seen yet. In the same way with market crashes, we can look at market declines over different geographies and time periods, but it does not mean that there is necessarily any sort of hard limit there.
After Black Monday, regulators overhauled trade-clearing protocols to bring uniformity to all prominent market products. They also developed new rules, known as "trading curbs" or colloquially as circuit breakers, allowing exchanges to temporarily halt trading in instances of exceptionally large price declines in some indexes; for instance, the DJIA.[15]
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