We haven’t had an October like this in a very long time. The Dow Jones Industrial Average was down another 327 points on Thursday, and overall the Dow is now down close to 1,500 points from the peak of the market. Unlike much of the rest of the world, it is still too early to say that the U.S. is facing a new “financial crisis”, but if stocks continue to plunge like this one won’t be too far away. And as you will see below, many believe that what we have seen so far is just the start of a huge wave of selling. Of course it would be extremely convenient for Democrats if stocks did crash, because it would give them a much better chance of doing well in the midterm elections. This is the most heated midterm election season that I can ever remember, and what U.S. voters choose to do at the polls in November is going to have very serious implications for the immediate future of our country.
Hi Christine, I can’t offer advice. There is a lot of risk in 2020. Trudeau may botch the trade negotiations and that could could start a Toronto slide. Without the auto sector, Whitby and Oshawa could get hit hard. Good thing is Trudeau could be gone next year and the Americans might listen to a new conservative government. Harper’s already visited the back door at the white house. From here to 2020 could be rough in Canada. Good luck with your sale.
Whereas London was once the financial capital of western Europe, it remains to be seen if it will continue to be the financial capital of the European Union. Hence the drop in the value of the pound. Hence economic uncertainty for all companies which do business in the UK or the rest of the Continent. Will the UK fall into a recession? How will that affect global demand?
Financial crisis of 2007–08 16 Sep 2008 On September 16, 2008, failures of large financial institutions in the United States, due primarily to exposure of securities of packaged subprime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis resulting in a number of bank failures in Europe and sharp reductions in the value of equities (stock) and commodities worldwide. The failure of banks in Iceland resulted in a devaluation of the Icelandic króna and threatened the government with bankruptcy. Iceland was able to secure an emergency loan from the IMF in November. Later on, U.S. President George W. Bush signs the Emergency Economic Stabilization Act into law, creating a Troubled Asset Relief Program (TARP) to purchase failing bank assets. Had disastrous effects on the world economy along with world trade.  
I’m less concerned than our friends at the Fed. Businesses are rebelling in mass against Trump’s punitive tariffs on steel, aluminum, and lumber. Trump is still blind to his own economic idiocy as I write. Given the torrent of negative press on tariffs in recent weeks, I suspect that a member or two of his retinue will force him to see the light. They’ll force him sooner than later.
Housing crash warnings have been sounding for many years both here and in China, which means the pressure for a big crash has been building. China is in trouble and so is Canada. With pressure, the human element, the human reaction, built on expectations built up by obsessively negative anti-Trump propaganda, could be sufficient to launch a panic-induced collapse. A panic meter might be the most significant crash signal.
These Tranche’s were nothing more than whipped cream on chit. Standard & Poors along with Moody knew all too well these loans weren’t as secure as advertised. At the risk of shareholder devaluation they were both falsely applying ratings to all of them. That’s called greed. CDO’S – synthetic CDO’S all in bad. I read it few times and know there are many reputable banks out there. The facts are however, they created and implemented what they could get away with. When the gun fired there was plenty of blame to go around. Now regulation has taken solid control of this and hopefully we will never experience this kind of meltdown again.
Various studies have supported that position. Index Fund Advisors, for instance, noted that in the 20 years from 1994 through 2013, the S&P 500 averaged an annual return of 9.2 percent, enough to turn a $10,000 initial investment into $58,352. But any investor who missed the 10 days with the biggest gains would see their average return fall to 5.5 percent and their final total fall to $29,121. Those who engage in market timing may be out of the market after downturns, missing some of the best days while waiting for a recovery to be clearly under way.
On August 24, 1921, the Dow Jones Industrial Average stood at a value of 63.9. By September 3, 1929, it had risen more than sixfold, touching 381.2. It would not regain this level for another 25 years. By the summer of 1929, it was clear that the economy was contracting, and the stock market went through a series of unsettling price declines. These declines fed investor anxiety, and events came to a head on October 24, 28, and 29 (known respectively as Black Thursday, Black Monday, and Black Tuesday).
In 1979, Atari unveiled the Atari 400 and 800 computers, built around a chipset originally meant for use in a game console, and which retailed for the same price as their respective names. In 1981, IBM introduced the IBM 5150 PC with a $1,565 base price (equivalent to $4,213 in 2017), while Sinclair Research introduced its low-end ZX81 microcomputer for £70 (equivalent to £246 in 2016). By 1982, new desktop computer designs were commonly providing better color graphics and sound than game consoles and personal computer sales were booming. The TI 99/4A and the Atari 400 were both at $349 (equivalent to $885 in 2017), Radio Shack's Color Computer sold at $379 (equivalent to $961 in 2017), and Commodore International had just reduced the price of the VIC-20 to $199 (equivalent to $505 in 2017) and the 64 to $499 (equivalent to $1,265 in 2017).
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.
During this growth boom, the SEC found it increasingly difficult to prevent shady IPOs and conglomerates from proliferating. In early 1987, the SEC conducted numerous investigations of illegal insider trading, which created a wary stance among many investors. At the same time, inflation and overheating became a concern due to the high rate of economic and credit growth. The Federal Reserve rapidly raised short term interest rates to temper inflation, which dampened some of stock investors’ enthusiasm. Many institutional trading firms began to utilize portfolio insurance to protect against further stock dips. Portfolio insurance is a hedging strategy that uses stock index futures to cushion equity portfolios against broad stock market declines. As interest rates rose, many institutional money managers scrambled to hedge their portfolios at the same time. On October 19th 1987, the stock index futures market was flooded with billions of dollars worth of sell orders within minutes, causing both the futures and stock markets to crash. In addition, many common stock investors attempted to sell simultaneously, which completely overwhelmed the stock market.
What I see today as concerning has very little to do with Presidents and everything to do with global banking and Fed policy. We have put our selves in a precarious situation with QE in order to massively re-inflate stock values and home values and it has worked beautifully as we have allowed that easing to go undiminished for over 8 years since the meltdown. Now we have to see what happens as we finally attempt to reverse course.
There's always a chance that the sell-off can morph into a decline of 10 percent or more from the market's September peak, which could thrust the market into its second so-called price correction of the year, Zaccarelli says. Still, he predicts that any downturn won't become a bear market, or 20 percent drop, and will instead turn out to be a good buying opportunity for investors with time to ride out any storm.
In 1979, Activision became the industry's first third-party developer. It was founded by Atari programmers who left the company because Atari did not allow credits to appear on their games and did not pay employees a royalty based on sales. At the time, Atari was owned by Warner Communications, and the developers felt that they should receive the same recognition that musicians, directors, and actors got from Warner's other divisions. After Activision went into business, Atari quickly sued to block sales of Activision's products, but failed to secure a restraining order and ultimately settled the case in 1982. This court case legitimized third-party development, encouraging companies such as Quaker Oats (with their US Games division) to rush to open video-game divisions, hoping to impress both stockholders and consumers.
I’m a first time buyer and i’m exploring to purchase a condo in downtown Toronto. A one decent 550sqft condo sells for about 450k (which i find absurd). Would you advise waiting till mid 2018, with the new stress test rules, in hopes that the prices will decrease? I can’t justify paying so much, but at the same time the prices seem to be going up every month.
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.
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.
The Toronto situation is similar to Vancouver’s housing market where prices have really plummeted (43%). With the resolution of trade with the US, it appears no Toronto housing crash is imminent, and prices will return to their upward climb. Inevitably, high interest rates and Canada’s lack of competitiveness will create a new crisis. New listings will likely drop as homeowners feel more comfortable with their employment outlook, and enjoy the housing price rise.
Is funny, the tropical depression is well away from us but we are getting an extremely wet weather system over the state, they call it an anti-cyclone, whatever that is, all i know is i could use some sunshine, been raining for weeks, only one or two days here and there that didnt rain. Too damn wet, crops rotting in the field, at least the market crops, oh well, such is life as a farmer!
The Times of London reported that the meltdown was being called the Crash of 2008, and older traders were comparing it with Black Monday in 1987. The fall that week of 21% compared to a 28.3% fall 21 years earlier, but some traders were saying it was worse. "At least then it was a short, sharp, shock on one day. This has been relentless all week." Business Week also referred to the crisis as a "stock market crash" or the "Panic of 2008".
Finally, once the perfect storm outlined above occurs, the policy tools for addressing it will be sorely lacking. The space for fiscal stimulus is already limited by massive public debt. The possibility for more unconventional monetary policies will be limited by bloated balance sheets and the lack of headroom to cut policy rates. And financial-sector bailouts will be intolerable in countries with resurgent populist movements and near-insolvent governments.
In August, the wheat price fell when France and Italy were bragging of a magnificent harvest, and the situation in Australia improved. This sent a shiver through Wall Street and stock prices quickly dropped, but word of cheap stocks brought a fresh rush of "stags", amateur speculators and investors. Congress voted for a 100 million dollar relief package for the farmers, hoping to stabilize wheat prices. By October though, the price had fallen to $1.31 per bushel.
The Roaring Twenties, the decade that followed World War I that led to the crash, was a time of wealth and excess. Building on post-war optimism, rural Americans migrated to the cities in vast numbers throughout the decade with the hopes of finding a more prosperous life in the ever-growing expansion of America's industrial sector. While the American cities prospered, the overproduction of agricultural produce created widespread financial despair among American farmers throughout the decade. This would later be blamed as one of the key factors that led to the 1929 stock market crash.
The un prepared survivors become canibals and begin to eat each other for food. Ted Turner and his elite buddies sit back and watch the show go down from satiltes in orbit and the cleansing procees commenses in time for the Hunger Games reset. The survivors run to the outskirts of the city to allow the rotting decalying bodies to finish decomposing, to return to scavange the abundance of resurces, batteries, etc
During the 1920s, the U.S. stock market underwent rapid expansion, reaching its peak in August 1929, after a period of wild speculation. By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.
To be able to make good decisions amid a stock market crash, investors will need to be able to remain calm. As Buffett has said, "Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."
Hi Sadaf, Thanks and as you saw, the economy is fairly strong so towns well outside the GTA might be the best bet for a 2 year time frame. Check out Orillia. This is a town that never took off which is a shame because it’s right on the highway and Lake Couchiching, close to cottage country, and prices are low. They’ve remodeled the town park waterfront and it still has a nice small town feel. Here’s an example:https://www.royallepage.ca/en/property/ontario/orillia/120-dunlop-street/7142115/mls30615008/ of a house near the town. $300k is about as low as you’ll get. The Orillia housing market could take off as “stress tested out” homebuyers get desperate for an affordable home to buy further out from the GTA.
A stock market bubble inflates and explodes when investors, acting in a herd mentality, tend to buy stocks en masse, leading to inflated and unrealistically high market prices. In describing market bubbles, former U.S. Reserve Chair Alan Greenspan referred to investors' "irrational exuberance" on the stock market in 1996, although his prophecy didn't really ring true, as the stock market continued to grow before entering into bear market territory in 2000. A stock market bubble's "pop" is often a signal that the stock market is experiencing a crash over the short-term, and is shifting from bull-to-bear-market mode over the long-term.
No definitive conclusions have been reached on the reasons behind the 1987 Crash. Stocks had been in a multi-year bull run and market P/E ratios in the U.S. were above the post-war average. The S&P 500 was trading at 23 times earnings, a postwar high and well above the average of 14.5 times earnings. Herd behavior and psychological feedback loops play a critical part in all stock market crashes but analysts have also tried to look for external triggering events. Aside from the general worries of stock market overvaluation, blame for the collapse has been apportioned to such factors as program trading, portfolio insurance and derivatives, and prior news of worsening economic indicators (i.e. a large U.S. merchandise trade deficit and a falling U.S. dollar, which seemed to imply future interest rate hikes).
“There’s no question when you look at last week, some of the selling is the result of programmatic selling because as volatility goes up, some of these algorithms force people to sell,” Solomon told CNBC’s Wilfred Frost. “Market structure can, at times, contribute to volatility and one of the things that we’re spending a bunch of time thinking about at the firm is how changes in market structure over the course of the last 10 years will affect market activity.”
The following day, Black Tuesday, was a day of chaos. Forced to liquidate their stocks because of margin calls, overextended investors flooded the exchange with sell orders. The Dow fell 30.57 points to close at 230.07 on that day. The glamour stocks of the age saw their values plummet. Across the two days, the Dow Jones Industrial Average fell 23% – from Wikipedia
Personally, I believe that the S&P 500 will bounce back on Friday, but that doesn’t mean that the crisis is over. Remember, some of the best days in stock market history happened right in the middle of the financial crisis of 2008. During market panics, we should expect to see dramatic ups and downs. When markets are calm, that is good news for stocks, but when markets start swinging wildly that is usually a sign to start heading for the exits.
Real estate markets could collapse in coastal regions vulnerable to the effects of rising sea levels. The Union of Concerned Scientists predicts that 170 U.S. coastal cities and towns will be “chronically inundated” in 20 years. Another study found that 300,000 coastal properties will be flooded 26 times a year by 2045. The value of that real estate is $136 billion. By 2100, that number will rise to $1 trillion. At most risk are homes in Miami, New York's Long Island, and the San Francisco Bay area.
The past week saw “risk on” with the latest escalation in the US/China trade conflict being less than feared. This saw shares rally, bond yields rise, commodity prices gain, the US$ fall and the A$ rise. US shares rose 0.9%, Eurozone shares gained 2.1%, Japanese shares rose 3.4%, Chinese shares rose 5.2% and Australian shares rose 0.5%. While the Australian share market participated in the global share market rebound, over the last week it has gone back to underperforming again, reflecting its relatively defensive/high-yield characteristics.
In 2011 high-frequency traders moved away from the stock market as there had been lower volatility and volume. The combined average daily trading volume in the New York Stock Exchange and Nasdaq Stock Market in the first four months of 2011 fell 15% from 2010, to an average of 6.3 billion shares a day. Trading activities declined throughout 2011, with April's daily average of 5.8 billion shares marking the lowest month since May 2008. Sharp movements in stock prices, which were frequent during the period from 2008 to the first half of 2010, were in a decline in the Chicago Board Options Exchange volatility index, the VIX, which fell to its lowest level in April 2011 since July 2007.
A bull market -- just like the one the U.S. stock market has experienced since 2009 -- happens when investors are optimistic about the markets and the economy, and when demand outpaces supply, thus driving up share prices. As bull markets peter out -- they can last anywhere from two years to nine years -- all it takes is a significant market event to create a crisis of confidence among investors and draw more sellers into the market. This can create a stock market crash that leads to a bear market.
The GTA market is still a big market and only the Montreal housing market has a chance to outperform the GTA housing market through 2020. Housing markets in Calgary and Vancouver are down significantly. However, the fall market is normally subdued, and buyers are likely waiting to see how the US elections pan out and whether the US housing market and economy will continue growing.
Like my maverick 88 nice smooth action just a good basic shotty. Takes 3 inch loads I think that’s overkill though but hey if I come across some during a shortage it will work. Would like to get a 590 though but the 88 is sufficient as it will mostly pull guard duty in the house so it won’t see rough conditions. Grew sweet potatoes this year gonna have 30lbs or more come harvest time. My garden and fruit trees produce so much I don’t buy produce anymore just meats grains juices really. I don’t hunt but might this year got me a decent crossbow and the shotgun of course there is no rifle hunting around here. Have a buddy who used to be a butcher and hunts and processes all his own meat. I’m fond of back strap and sausage.
You can cushion the effects of a crash by allocating to defensive and blue-chip stocks, bonds, gold and cash. Having some cash in your portfolio also allows you to buy back into the market at lower levels. The current stock market is fairly expensive, but there are no signs of an imminent crash. However, that doesn’t mean market conditions can’t change quickly. That’s why you should always be ready for the next crash.
Each of these consoles had its own library of games produced by the console maker, and many had large libraries of games produced by third-party developers. In 1982, analysts noticed trends of saturation, mentioning that the amount of new software coming in will only allow a few big hits, that retailers had too much floor space for systems, along with price drops for home computers could result in an industry shakeup.