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.
If you make 6% after taxes and fees on your investments, then you’re ahead by 3.5%, or $20k/year after the transaction fees are taken off. In Vancouver, like the couple from the G&M article, you’re ahead by more not only in percentage terms due to a higher price-to-rent, but also because the amounts are higher ($1M houses rather than $650k), so you’re even further ahead in dollar terms ($45k per year).
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The Wall Street Crash had a major impact on the U.S. and world economy, and it has been the source of intense academic debate—historical, economic, and political—from its aftermath until the present day. Some people believed that abuses by utility holding companies contributed to the Wall Street Crash of 1929 and the Depression that followed. Many people blamed the crash on commercial banks that were too eager to put deposits at risk on the stock market.
A little more than a week later, stocks sank after a tweet from the president challenged the idea that Russia’s missile defense system could shoot down American smart bombs. Investors clearly worry that Trump’s tweeted rhetoric could be taken the wrong way by one or more global leaders, leading to escalation, or even conflict. Should that happen, the stock market could tank.
In the second half of 1982 the number of cartridges grew from 100 in June to more than 400 in December. Experts predicted a glut in 1983, with 10% of games producing 75% of sales. BYTE stated in December that "in 1982 few games broke new ground in either design or format ... If the public really likes an idea, it is milked for all it's worth, and numerous clones of a different color soon crowd the shelves. That is, until the public stops buying or something better comes along. Companies who believe that microcomputer games are the hula hoop of the 1980s only want to play Quick Profit." Bill Kunkel said in January 1983 that companies had "licensed everything that moves, walks, crawls, or tunnels beneath the earth. You have to wonder how tenuous the connection will be between the game and the movie Marathon Man. What are you going to do, present a video game root canal?"
In a 2011 article that appeared on the Wall Street Journal on the eve of the anniversary of the 2010 "flash crash", it was reported that high-frequency traders were then less active in the stock market. Another article in the journal said trades by high-frequency traders had decreased to 53% of stock-market trading volume, from 61% in 2009. Former Delaware senator Edward E. Kaufman and Michigan senator Carl Levin published a 2011 op-ed in The New York Times a year after the Flash Crash, sharply critical of what they perceived to be the SEC's apparent lack of action to prevent a recurrence.
It's impossible to point to a single reason why any of myriad measurements of the stock market increase or decrease in a day. A company releasing great news about its business might draw more investors to buy its stock and push up the price, but you can't tell if they're speculating or if they've analyzed the stock and its financial basics and really believe it's a good price now.
This does not mean that successful investing is impossible; only that the more we learn about market behavior, the more it seems that trying to deal with uncertainty is more important than pretending that we can have any certainty. More precisely, managing risk seems to be a better approach to investing than concocting forecasts on asset returns. This could mean, for example, finding ways of identifying when market participants start to align on one side of a trade by measuring correlations, or measuring returns to flash a warning when they start growing at “super-exponential” rates.
Throughout his presidency, questions arose from his handling of various events, including one self-inflicted crisis after another. Tensions rose as he fired Michael Flynn and then FBI director James Comey. The selloff on the morning of May 17, 2017 occurred after reports that Comey was asked to drop the formal investigation into Flynn. If these allegations are true, this could represent the same sort of obstruction of justice which lead to the impeachment calls and, ultimately, resignation of President Richard Nixon.
Yes, the market will fall by about 10% about once a year on average. However, those bigger crashes where the market just carries on down that are prominent in market memory, are rare events. Since many statistical techniques are reliant on a lot of data for robustness, those same techniques may be out of their depth when examining crashes. In fact, these events seem to break the patterns that seem to govern the market most of the times.
Any of the measurements people quote—any of the stock market indexes which go up and down—are just measurements. They're averages. They're big bundles of numbers all mixed together. In all truth, they only reflect a snapshot of a point in time. They're numbers that stocks happened to end on when trading stopped for the day (or, at least, paused until after hours trading took over).
The crash followed an asset bubble. Since 1922, the stock market had gone up by almost 20 percent a year. Everyone invested, thanks to a financial invention called buying "on margin." It allowed people to borrow money from their broker to buy stocks. They only needed to put down 10-20 percent. Investing this way contributed to the irrational exuberance of the Roaring Twenties.
Enjoyed reading the article. What do you think about the Atlanta market? Since the last crash, the housing market has skyrocketed with new folks/millennials moving into the area. I can’t imagine how people are able to continue to afford these rising prices. The pay out is not matching this rising cost of living. Any words or advice for the Atlanta market?
September is also when the Fed is next expected to raise interest rates, and its post-meeting statement Sept. 26 and comments from Fed Chairman Jerome Powell could signal how strongly the Fed views its forecast for a December hike. David Ader, chief macro strategist at Informa Financial Intelligence, said Powell was not as dovish at Jackson Hole last week as some may have thought.
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.
Finally, as you think about your allocation there are a few things to consider. Generally, lower risk bonds hold up better during stressed markets. U.S. Treasury bonds have historically risen in value during extreme market stress. It's not guaranteed but may be helpful to portfolios if history is any guide. Also, depending on the nature of the crisis diversifying assets such as commodities, including gold, or real estate can be helpful. Again, these won't work every time, for example in 2008-9 real estate was the epicenter of the crisis but spreading your bets can help. Finally, within stocks diversification is useful. We've seen high valuations in U.S. blue chips in the 1970s, U.S. tech in the 1990s and Japanese investments in the 1980s, each was met with nasty price declines on the other side. Rather than trying to predict these events, it can be best to spread your bets across sectors, geographies and other categories, so that if the next crash does focus on one specific area, then you won't be wiped out.