In the recent statement, the head of research at Fundstrat Global Advisors pointed out two major types of crypto players — those who are “using it and have wallets in crypto,” and those who belong to a speculative side of the market. According to Lee, those two sides of the crypto community should find a way for “sort of interacting with each other” for crypto investors not to get burnt by crashes like this.
Impression : From the foregoing discussion we can say that Indian stock market was already reeling under pressure due to shadow banking sector . The IL & FS crisis added bitter flavour to Indian market and sudden fall became inevitable . Sudden fall came as crisil rated 3 to 4 arms of IL & FS as junk . This created fear among investors and lot of selling took place in financial and infra stocks . History is full of such episodes of default by bank or financial institutions . What we can learn from the crisis is that for long-term investment one can avoid banking or financial sectors especially in india as both sectors are reporting lot of mess . Earlier PNB issue ..Now IL & FS .
Adjust accordingly. If you have to take some course of action, change the stocks you're buying. Historically, some stock sectors do better than others in declining markets. For example, high-dividend stocks tend to be less volatile than other stocks. They are usually insulated from big bear market drops due to the dividend alone. Sector-wise, utility stocks, consumer cyclicals, service-oriented companies, food and pharmaceutical stocks tend to do better during an economic downturn than other companies. Some stock sectors just tend to outperform others during a bear market. The bad news is that when the market does turn bearish again these stocks won't rise as fast and as high as, say, technology or emerging market stocks.
Of course, sometimes something happens. On June 23, 2016, voters in the United Kingdom voted for their country to leave the European Union. Membership in the EU means improved trade policies, less friction around goods and services and people moving across borders, and (despite the economic kerfuffle around different economic strengths and weaknesses between member countries) a general sharing of wealth from multiple countries all working more or less together.
Finally, once you feel you've got a portfolio that will provide sufficient gains during rising markets and enough protection during routs so you'll be able to hang on until the eventual recovery, stick with that mix, except for occasional rebalancing, regardless of what's going on in the market. The idea is to make sure your portfolio doesn't become too aggressive during market upswings or too conservative when stocks take a hit.
The portfolio I am testing in this study purchases 2-month 0.5 delta puts on the S&P 500 Composite Index (approximately 30 percent out of the money, in the case of a 40 percent implied volatility) at the start of each strategy period at an assumed 40 percent volatility level…. After every month, the 2-month put options position is rolled (the existing options are sold and new 2-month puts are purchased, which resets the position every month)… Each month the portfolio spends one half of one percent on puts, and the remaining 99.5 percent stays invested in the S&P index.
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.
Genuis and DK: Ten dollar bills and twenties’s mainly and some hundred dollar bills in a house safe. good idea: pvc pipe with currency stashed under other pipe, like in the shed. make sure there are end caps to keep bugs out. Lots of canned sardines, spam, salmon, beans, chicken, canned veggies, etc. None of this long term crap that is loaded with sodium and fillers. After I’ve taken money out of my account, more is deposited from retirement/brokerage accounts soon after, and I have to repeat the cycle again. Many can relate to this endless cycle.
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.
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.
Tulip Mania (in the mid-1630s) is often considered to be the first recorded speculative bubble. Historically, early stock market bubbles and crashes have also their roots in socio-politico-economic activities of the 17th-century Dutch Republic (the birthplace of the world's first formal stock exchange and market), the Dutch East India Company (the world's first formally listed public company), and the Dutch West India Company (WIC/GWIC) in particular. As Stringham & Curott (2015) remarked, "Business ventures with multiple shareholders became popular with commenda contracts in medieval Italy (Greif, 2006, p. 286), and Malmendier (2009) provides evidence that shareholder companies date back to ancient Rome. Yet the title of the world's first stock market deservedly goes to that of seventeenth-century Amsterdam, where an active secondary market in company shares emerged. The two major companies were the Dutch East India Company and the Dutch West India Company, founded in 1602 and 1621. Other companies existed, but they were not as large and constituted a small portion of the stock market (Israel  1991, 109–112; Dehing and 't Hart 1997, 54; de la Vega  1996, 173)."
Filia pointed to the increasing frequency of value-at-risk shocks, or swift market corrections, as an indication of fragility for global markets. The report cited as evidence the VIX volatility index spike in February, the Turkish lira's dramatic drop in recent months, and Italy's roller-coaster bond price moves, among other examples, as early warning signals for "system instability of the broader financial network."
6750 ft up on top of a mountain lends some perspective that’s for sure, The quiet is great for the sole. We still have to work during the week. On the weekends we work for ourselves, gathering firewood learning how to grow food etc. Freedom at least for me is eliminating the need for outside inputs. We have just enough solar power to be comfortable running our house. Woodstove for heat, well for our water. Growing some vegetables for food. Every year is easier than the year before.
As a former portfolio manager, I have seen many hedges for your portfolio. From buying puts to selling calls and using a myriad of ETFs, the choices in the hedging world are limitless. Now with Bitcoin we need to see if this proves to be a flight to quality in the times of panic. The best example would be to look at the events around Brexit last year. We saw a major flight to quality, and many managers chose to grab some downside protection.
Obviously, if the market crashes, it's a good time to go shopping for bargains. The stocks tied to lots of wonderful businesses are likely to be depressed -- perhaps significantly so. But if you don't have some ready cash (or access to cash) to take advantage of that, you could be out of luck. Or you might find yourself selling out of some stocks at depressed prices (thus realizing losses or shrunken gains) in order to snap up shares of more compelling stocks. That's not ideal.
Tech stocks, this year’s best-performing industry, will be in the spotlight, as executives from Twitter, Facebook and Google’s parent Alphabet begin testimony to Congress on Wednesday while Trump blasts about antitrust. Friday’s monthly payrolls data precedes a policy meeting by Federal Reserve later in the month, when the central bank is expected to raise interest rates for an eighth time since 2015.
Since traditional statistical methods are perhaps less appropriate for extreme markets, other paths of examination may be more fruitful. For example the Santa Fe Institute is examining links between different disciplines. Potentially a market crash may have more in common with a growing pile of sand, than how the same market performs outside of a crash environment. When a grain of sand is added to an existing pile so the pile grows ever higher. Most of the time, one more grain will cause the pile to grow in height by a just fraction. However, at other times the addition of a single grain will lead to a collapse and in turn that collapse may be small, large or potentially even massive. Some researchers believe that better understanding these sorts of events hold the key for a better understanding of extreme market events, because today many traditional models simply fail to hold up.
As the large seller's trades were executed in the futures market, buyers included high-frequency trading firms—trading firms that specialize in high-speed trading and rarely hold on to any given position for very long—and within minutes these high-frequency trading firms started trying to sell the long futures contracts they had just picked up from the mutual fund. The Wall Street Journal quoted the joint report, "'HFTs [then] began to quickly buy and then resell contracts to each other—generating a 'hot-potato' volume effect as the same positions were passed rapidly back and forth.'" The combined sales by the large seller and high-frequency firms quickly drove "the E-Mini price down 3% in just four minutes".
The SEC and CFTC joint 2010 report itself says that "May 6 started as an unusually turbulent day for the markets" and that by the early afternoon "broadly negative market sentiment was already affecting an increase in the price volatility of some individual securities". At 2:32 p.m. (EDT), against a "backdrop of unusually high volatility and thinning liquidity" that day, a large fundamental trader (known to be Waddell & Reed Financial Inc.) "initiated a sell program to sell a total of 75,000 E-Mini S&P contracts (valued at approximately $4.1 billion) as a hedge to an existing equity position". The report says that this was an unusually large position and that the computer algorithm the trader used to trade the position was set to "target an execution rate set to 9% of the trading volume calculated over the previous minute, but without regard to price or time".
It’s a sorry reflection of the times we live in when we celebrate the rising cost of providing shelter for your family. The social cost of both parents having to work in order to afford a home – kids in daycare, less disposable income to put to into their development… this is the situation for so many families now. This inconvenient truth is happily ignored by those who profit in the current market, and while money it to be made it is unlikely to change.
On the other hand, tax increases can have the opposite effect. One potential way to fix the Social Security funding problem would be to raise payroll taxes on employees and employers. There are several ways this could happen, but this would mean lower paychecks for workers and higher expenses for employers, and could certainly be a negative catalyst.
No mention of the paper trading driving the price down while banks and foreign governments are buying big time on this manipulated market. If these entities are buying these metals they see the value, not to mention that every major nation has a currency based on huge deficits. So where is the value? Precious metals that have retained value for thousands or years or paper currency that is backed by nothing more that a politicians promise?
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. By 1983, an estimated 100 companies were vying to get a foothold in the video game market.
Job one in the midst of a stock market crash is to be aware of your own exposure to the market. Are you highly leveraged as a margin investor? Is your investment portfolio overly weighted with riskier growth stocks or other more-speculative stocks? Has your personal financial situation changed significantly over the course of a 24-hour market collapse?
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.
The cost of ownership in the most high priced markets is going up even more. Why? The limitation on the mortgage interest deduction to $750K and the limitation on the sales and property tax deduction to $10K. With the increase in interest rates, the partial non deductibility of interest and taxes, the overall cost of ownership is going up. Most people will feel the punch in their guts next year when they file the 2018 taxes. That is when most folks would realize what hit them was not a pleasant surprise!
Asian stock markets rose on Friday after Wall Street hit a new high and a survey showed Japanese manufacturing accelerating, an AP report said. Tokyo's Nikkei 225 rose 0.5% to 23,793.35, Hong Kong's Hang Seng added 0.9% to 27,712.47, China's Shanghai Composite Index climbed 0.3%, erasing earlier losses, to 2,737.27 while Seoul's Kospi was up 0.2% at 2,327.87.
Since Trump has already started a trade war with China and wouldn’t dare attack nuclear-armed North Korea, his last best target would be Iran. By provoking a military confrontation with that country, he would trigger a stagflationary geopolitical shock not unlike the oil-price spikes of 1973, 1979 and 1990. Needless to say, that would make the oncoming global recession even more severe.
The US Fed meets on September 26th but the CME Fed tool is already indicating a probability of 95% for a rate hike by the Fed. That is not good news for the Indian markets. It will impel the RBI to front end another rate hike to prevent any risk of capital market outflows. Also higher Fed rates will lead to a stronger dollar and that by itself will put pressure on the INR, which is already vulnerable at this point of time.
— The Big Picture is Being Obscured By Short-Term Fears. "Animal Spirits" are ruling the stock market. Millions of investors are afraid that the torrent of cash created by low interest rates, hefty piles of corporate reserves and even more giveaways in the new U.S. tax code won't be enough to juice up a world economy (outside of the developing world) that may be slowing down.
The real estate market could collapse if banks and hedge funds returned to investing in risky financial products. These derivatives were a major cause of the financial crisis. Banks sliced up mortgages and resold them in mortgage-backed securities. These securities were a bigger business than the mortgages themselves. That's why banks sold mortgages to just about anyone. They needed them to support the derivatives. They sliced them up so that bad mortgages were hidden in bundles with good ones. Then when borrowers defaulted, all the derivatives were suspected of being bad.
Forthcoming state elections are being pitched as Modi’s acid test before the parliamentary elections scheduled for May. As the Opposition seeks to cobble together a coalition against the Modi-led BJP and raise fresh controversies to corner his administration, analysts and political observers are losing their earlier confidence about Modi’s chances of winning a second term. An adverse election result may bring in temporary uncertainty over policy continuity and make investors nervous.
Eh... Who cares?! I'll pay... a 49 + 1/4 bid for 50,000 Procter, if I were at my hedge fund. I mean, this is ridi... this is a good opportunity. When I walked down here it was at 61—when I walked down here it was at 61, I'm not that interested in it. It's at 47, well that's a different security entirely, so what you have to do, though, you have to use limit orders, because Procter just jumped seven points because I said I liked it at 49.
Consider hiring a fee-only financial advisor to kick the tires on your portfolio and provide an independent perspective on your financial plan. In fact, it’s not uncommon for financial planners to have their own financial planner on their personal payroll for the same reason. An added bonus is knowing there’s someone to call to talk you through the tough times.
When some investors think of real estate, they assume that because prices are generally rising across the country, we must be headed toward another crash. The truth is that’s simply not the case. A bevy of factors have come together that are serving to safeguard the economy against another national crash. We could see prices slow down, or decrease some, but a crash is unlikely. Increasing prices is not the only reason a crash must come. Other countries and the US have seen price booms in the past without a crash.
Technical correction - Market trends doesn’t go up successively higher, instead it moves like a set of waves taking two steps forward and one step backward. The recent selloff can be perceived as a backward step ! It’s a term in technical analysis, Traders attempt to study market trends using technical analysis, which means using price charts and graphs to make investment or trading decisions on stock market
On November 8, 2016, Donald Trump was declared to have been elected as the 45th president of the United States. During the evening and night of the 8th and through the morning of the 9th, global financial markets lost a tremendous amount of value—at one point, US markets had lost a trillion dollars in one of the biggest crashes ever. While the overnight US markets showed big losses, even hitting the circuit breakers, the day of November 9 closed with the three major stock indexes up over a point each. It's too early to tell what this means in the long term.
Take your money out of the bank ASAP. If you still keep your money in the bank, go there and remove as much as you can while leaving in enough to pay your bills. Although it wasn’t a market collapse in Greece recently, the banks did close and limit ATM withdrawals. People went for quite some time without being able to access their money, but were able to have a sense of normalcy by transferring money online to pay bills or using their debit cards to make purchases. Get your cash out. You don’t want to be at the mercy of the banks.
In a sense, it's understandable why panic occurs. In fact, one key ingredient for crashes is often panicked investors. First off, there is typically something big and scary associated with a crash. Yet, it's often temporary. It's important to remember that the markets have endured world wars, nuclear weapons, disease epidemics, inflation spikes, mass unemployment and presidential assassinations and in each case global markets have generally come back to make new highs.