As a Young Family (married with one child) home buyer, we made a loss when we sold out to move to the Toronto area and currently rent. Our landlord is selling up a the Townhouses in our area have grown from $280,000 10 years ago to one just selling a few days ago for $630,000. Last month they were selling for $450,000. We now have no option but to continue renting and are now looking at the city for a Rental Condo (which is now cheaper than the 3 hour daily �suburb commute) . We didn’t even have the money to buy when it was worth $280,000. Our house hold income is around $80,000 a year. The reality is, the average Canadian has a debt load at a level even higher than the unsustainable US pre 2008 crash.
The Fed didn't realize a collapse was brewing until March 2007. It realized that hedge fund housing losses could threaten the economy. Throughout the summer, banks became unwilling to lend to each other. They were afraid that they would receive bad MBS in return. Bankers didn't know how much bad debt they had on their books. No one wanted to admit it. If they did, then their credit rating would be lowered. Then, their stock price would fall, and they would be unable to raise more funds to stay in business.
1986 and 1987 were banner years for the stock market. These years were an extension of an extremely powerful bull market that had started in the summer of 1982. This bull market had been fueled by low interest rates, hostile takeovers, leveraged buyouts and merger mania. Many companies were scrambling to raise capital to buy each other out. The business philosophy of the time was that companies could grow exponentially simply by constantly acquiring other companies. In a leveraged buyout, a company would raise a massive amount of capital by selling junk bonds to the public. Junk bonds are bonds that pay high interest rates due to their high risk of default. The capital raised through selling junk bonds would go toward the purchase of the desired company. IPOs were also becoming a commonplace driver of market excitement. An IPO or Initial Public Offering is when a company issues stock to the public for the first time. “Microcomputers” now known as personal computers were become a fast growing industry. People started to view the personal computer as a revolutionary tool that would change our way of life, while creating wonderful business opportunities. The investing public eventually became caught up in a contagious euphoria that was similar to that of any other historic bubble and market crash. This euphoria made investors, as usual, believe that the stock market would “always go up.”
The internal reasons included innovations with index futures and portfolio insurance. I've seen accounts that maybe roughly half the trading on that day was a small number of institutions with portfolio insurance. Big guys were dumping their stock. Also, the futures market in Chicago was even lower than the stock market, and people tried to arbitrage that. The proper strategy was to buy futures in Chicago and sell in the New York cash market. It made it hard – the portfolio insurance people were also trying to sell their stock at the same time.[14]
Following the 55%-plunge in DHFL share price, biggest since listing, Kapil Wadhawan, CMD, DHFL said to CNBC TV18 that it is a big surprise and shock to him. We are sitting in a strong liquidity position and there is not default whatsoever, Wadhawan said. All this what we are seeing is a "panic-stricken market reaction" and the total liability position till 31 March 2018 was just Rs 4,800 crore, Wadhawan said further to CNBC TV18. At the same time, there is close to Rs 10,000 crore of liquidity available with us in the system other than collections that we accrue on a monthly basis, Wadhawan said. NPA position is strong and the asset quality is top notch, Wadhawan added. 
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.
The Canadian government hasn’t come up with a plan to stop investment money fleeing to “low tax” United States.  The US economy and the US stock market and USD have all soared with Trump’s strategy. With the border blocked, there will be no reason to invest in Canada. Trudeau has refused to look at tax reductions. That has severe implications for the financial markets here.
The next step that was taken was striving to make reforms in accounts. That implied that the companies now needed to make clearer balance sheets that disclosed more information on the transactions and investments of the company. The companies were asked to make a proper disclosure of all details such as stock options and investments that were made offshore by the companies. This was done to give the investors a better understanding of a company before they actually did invest in a particular company. Since this was not mandatory earlier, the investors couldn’t judge a company properly and invest in nonprofitable ventures which led to losses. Since the conflict of interest of the research firms led to losses, the new rule that was laid was that the investment bankers and the research analysts had to work separately. This was needed to be followed very strictly as there were high penalties charged in case of breach of regulations.
I find it hard to believe inventory increased by 50 percent, do you have any numbers on that? To see why inventory is low you need to look at the number of sales as well. If we were selling many more homes that would indicate inventory is low because people are buying everything up, but sales are down. That indicates it is not investors buying everything, but there are simply not enough houses for sale. That is what I see in most markets. There are not enough houses for everyone who wants to buy.
When Tobin’s Q is in its uppermost quartile, as it is today, it suggests this reward/risk equation is not at all favorable for investors. In other words, these “fat tails” get even fatter during these periods thus investors should look to hedge their portfolios against large declines. And this is precisely the “asset inflation” Taleb was referring to in the interview mentioned at the top of this post.
The number of major store chains shutting down or downsizing is remarkable. One of the latest to fall is Toys “R” Us. Some may find consolation in the fact that one of the reasons for the crumbling of traditional brick-and-mortar stores—but by no means the only one—has been Amazon.com, Inc. (NASDAQ:AMZN). But the day could come when even this giant is slain.
The stock market crash of October 1929 led directly to the Great Depression in Europe. When stocks plummeted on the New York Stock Exchange, the world noticed immediately. Although financial leaders in the United Kingdom, as in the United States, vastly underestimated the extent of the crisis that would ensue, it soon became clear that the world's economies were more interconnected than ever. The effects of the disruption to the global system of financing, trade, and production and the subsequent meltdown of the American economy were soon felt throughout Europe.[39]

However, independent studies published in 2013 strongly disputed the last claim.[52][53][54] In particular, in 2011 Andersen and Bondarenko conducted a comprehensive investigation of the two main versions of VPIN used by its creators, one based on the standard tick-rule (or TR-VPIN)[50][55][56] and the other based on Bulk Volume Classification (or BVC-VPIN).[57] They find that the value of TR-VPIN (BVC-VPIN) one hour before the crash "was surpassed on 71 (189) preceding days, constituting 11.7% (31.2%) of the pre-crash sample". Similarly, the value of TR-VPIN (BVC-VPIN) at the start of the crash was "topped on 26 (49) preceding days, or 4.3% (8.1%) of the pre-crash sample."[53]
These stocks are known as high beta stocks, as they outperform on the way up and underperform on the way down. During a bull market, these high beta stocks are often the stocks that perform best. As a result they will grow into the largest positions in your portfolio. That’s why it’s a good idea to rebalance your portfolio and make sure the weighting of these “high beta” stocks aren’t too high. Here some more ways to prepare for a stock market crash:
This book has lots of good statistical information to back up its premises...which seem to boil down to...Buy a home within your means (and he does define how to find that out, which is a good thing if you can't figure it out on your own)...Anticipate that the home market could go down as interest rates rise making your home harder to sell in a pinch (to his credit, he tells you how to avoid that too)...and a few other common sense rules of buying that could be applied to many things. If a person is going to spend 6 figures on anything, you would think that they would take the time to learn what they are doing, but it is obvious to the author and to many other people watchers in the world that too many people just don't put effort into watching where they put their money. So, if you are a person who carefully spends your money without rushing into any purchase, you probably have enough sense to not have to buy this book; and if you are person who is just the opposite, you probably aren't too concerned even now about learning anything about your home purchase, so you aren't even reading this review. Last note: if you were going to buy properties to use for investment purposes, this book could be of assistance. Hope this helps.
Jet Airways (India) shares slumped more than 7% on Friday to nearly 4-year low after India's biggest full-service airline said that income tax officials were conducting a survey at its premises. The stock of Jet Airways slipped as much as 7.1% to Rs 225.85, its lowest since October 2014. Up until Wednesday's closing price, Jet Airways shares have declined by 70% in the current year so far. "Income Tax officials are conducting a survey at the premises of the company since 19 September 2018. The company is fully cooperating with the authorities and are responding to the queries raised by the Income Tax Authorities," Jet Airways said in an exchange filing.
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Other scientists disagree with this notion, and note that market crashes are indeed “special.” Professor Didier Sornette, for example, a physicist at the Swiss Federal Institute of Technology, argued that a market crash is not simply a scaled-up version of a normal down day but a true outlier to market behavior. In fact, he claims that ahead of critical points the market starts giving off some clues. His work focuses on interpreting these clues and identify when a bubble may be forming and, crucially, when it ends.
"I think we're going to work through this continued intersection of domestic and international political risk, with the fact the economy is very good and the earnings projection is very good, and the valuations are creeping up, but they're by no means excessive, with interest rates at this level," said Julian Emanuel, chief equity and derivatives strategist at BTIG. "But our view has been all along that basically you've got to fix the relationship with China in order to really make material further upside progress."

Prolonging the good times into September will require navigating a calendar full of pitfalls. Of primary concern are emerging markets, where currency and other assets are weakening and some say contagion will worsen. The big risk is on the trade front with President Donald Trump said to want to move ahead with a plan to impose tariffs on $200 billion of Chinese imports as soon as next week.
Since the crashes of 1929 and 1987, safeguards have been put in place to prevent crashes due to panicked stockholders selling their assets. Such safeguards include trading curbs, or circuit breakers, which prevent any trade activity whatsoever for a certain period of time following a sharp decline in stock prices, in hopes of stabilizing the market and preventing it from falling further.
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.

The Housing Bellwether Barometer is an index of homebuilders and mortgage companies. In 2017, it skyrocketed like it did in 2004 and 2005. That's according to its creator, Stack Financial Management, who used it to predict the 2008 financial crisis. Similarly, the SPDR S&P Homebuilders ETF has risen 400 percent since March 2009. It outperformed the S&P 500 rise of 270 percent.

In the long term, this may reflect that the Great Recession of 2008 is finally over—especially given that the US economy has been at full employment for a while. Time will tell what a new Federal Reserve chairman will implement in terms of policy, but giving the Fed options to reduce rates again as necessary is a positive sign for global economic outlook.
In this book, published in 2003, Talbott predicted a housing crash that would start around 2005. In fact, the peak of the housing market was the summer of 2005. It took longer for the fall in prices to take down the whole economy. Talbott explained in an easy-to-understand way why it was inevitable that housing prices would fall and crash the economy. The advice over what to do about it wasn't as good as the prediction.

If you are concerned about how much you could lose on some of your largest positions, you can also think about using stop loss orders to mitigate potential losses. For each stock, you can set a few price levels below technical support where you will begin to reduce the size of the position. It’s best to do this long before stock prices begin to fall so that your decisions are rational and not driven by emotions. Stop losses are not generally a strategy used by long term investors. However, they can help you manage the emotional pain of a bear market.

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On Black Monday, the Dow Jones Industrial Average fell 38.33 points to 260, a drop of 12.8%. The deluge of selling overwhelmed the ticker tape system that normally gave investors the current prices of their shares. Telephone lines and telegraphs were clogged and were unable to cope. This information vacuum only led to more fear and panic. The technology of the New Era, previously much celebrated by investors, now served to deepen their suffering.
According to the NYSE TICK, or uptick minus downtick, index, at precisely 2:43pm, the selling order flood was so big it not only surpassed the acute liquidation that was observed around 3PM on Wednesday, but the -1,793 print was one that had not been seen for 8 years: as Bay Crest Partners technical analyst Jonathan Krinsky wrote, the sudden and violent surge in selling as measured by the TICK index, when downtick volume overpowered upticks, was the lowest reading since the May 6, 2010 “flash crash” when liquidity dried up in markets, sending the market plummeting for a few minutes, as HFT briefly went haywire (or when a spoofer outsmarted the algos, depending on what version of events one believes).
This post delves briefly into the theory and factors involved in market crashes, corrections and selloffs including investor expectations and mood, FED decisions, government meddling and AI systems (Note: even the people who make Artificial intelligence and self-learning algorithms have admitted they don’t understand how the AI systems make decisions. They learn and make decisions independent of human input and may not be  able to report to humans how and why they acted).
And just when you think that this may all be a bunch of bul…h…t. A free energy inventer gets a phone call from a Tv morning show, calling him raising hell on his ass telling him, that he needs to buy up all the free energy electrical devices now, the free energy inventor declines his offer, Host hangs up on him pissed and then calls him back asking him nicely if he could allow him to send him a truck to empty his entire store inventory, the owner declines. Store owner inventor is told by said talk show host, that the elites are getting everything in place to plug the plug. Its obvious that its a planned calapse. The inventor tells us that we will be needing electicity to power up devices, because he was told that the grid will go down, and obvious planned EMP ATTACK on all our major cites, “planned” it seems.

Remember: the so-called stock market is one of many, many measurements of dozens or hundreds or thousands of companies in countless industries. Some businesses are great. Some businesses are poor. Some are growing. Some are shrinking. Some of their markets are disappearing. Others are expanding. We can examine history to explain what the market does over time, but we cannot predict a single day.
The Housing Bellwether Barometer is an index of homebuilders and mortgage companies. In 2017, it skyrocketed like it did in 2004 and 2005. That's according to its creator, Stack Financial Management, who used it to predict the 2008 financial crisis. Similarly, the SPDR S&P Homebuilders ETF has risen 400 percent since March 2009. It outperformed the S&P 500 rise of 270 percent.
A year before its demise, Lehman's leverage ratio was a massive 30-to-1, which economists consider as being an extremely high risk. The investment banking giant had $22 billion in equity to back $691 billion in total assets. At that point, even a minuscule drop in asset value of 3% was enough to send one of Wall Street's giants careening into oblivion.
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.
Having been suspended for three successive trading days (October 9, 10, and 13), the Icelandic stock market reopened on 14 October, with the main index, the OMX Iceland 15, closing at 678.4, which was about 77% lower than the 3,004.6 at the close on October 8. This reflected that the value of the three big banks, which had formed 73.2% of the value of the OMX Iceland 15, had been set to zero.
Selling intensified in mid-October. On October 24 ("Black Thursday"), the market lost 11 percent of its value at the opening bell on very heavy trading. The huge volume meant that the report of prices on the ticker tape in brokerage offices around the nation was hours late, so investors had no idea what most stocks were actually trading for at that moment, increasing panic. Several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor.[9] The meeting included Thomas W. Lamont, acting head of Morgan Bank; Albert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York. They chose Richard Whitney, vice president of the Exchange, to act on their behalf.
In Berkshire's 2017 shareholder letter, Buffett outlined four times when Berkshire stock fell 37% or more, representing what he called "truly major dips." The biggest decline occurred from March 1973 to January 1975, when Berkshire stock declined a whopping 59%. "In the next 53 years our shares (and others) will experience declines resembling those in the table," Buffett said about these four major declines. "No one can tell you when these will happen. The light can at any time go from green to red without pausing at yellow.
Hedge funds are an alternative for investors with large enough portfolios. Hedge funds use a combination of long and short positions, and other strategies to generate returns regardless of the direction of the overall market. However, when considering hedge funds, you should tread with caution and do your own research. Some hedge funds have performed very well, especially during bear markets – but many others have performed very poorly. Just because a hedge fund is called a hedge fund it does not mean it will perform well during a crash.

Nintendo portrayed these measures as intended to protect the public against poor-quality games, and placed a golden seal of approval on all licensed games released for the system. Further, Nintendo implemented its proprietary 10NES, a lockout chip which was designed to prevent cartridges made without the chip from being played on the NES. The 10NES lockout was not perfect, as later in the NES's lifecycle methods were found to bypass it, but it did sufficiently allow Nintendo to strengthen its publishing control to avoid the mistakes Atari had made.[51] These strict licensing measures backfired somewhat after Nintendo was accused of trust behavior.[52] In the long run, this pushed many western third-party publishers such as Electronic Arts away from Nintendo consoles, and would actively support competing consoles such as the Sega Genesis or Sony PlayStation. Most of the Nintendo platform-control measures were adopted by later console manufacturers such as Sega, Sony, Microsoft, and Intellivision Entertainment although not as stringently.
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.
“Investing is the attempt to make a financial killing, in other words, bigger profits and less work. Why else would anyone with their head on straignt want to make a profit on the backs of others? Thousands of years ago it was determined by one nation that debts should be forgiven every 7 years. Lending money with large interest rates was unfair. It’s in Egyptian and Abrahamic history.”
A sudden sell-off was seen in most of the NBFCs (Non-Banking Finance Companies) with DHFL plummetting as much as 45%. In the Nifty Financial Services index, 14 of 20 stocks fell into negative territory with Indiabulls Housing Finance losing more than 11% followed by Shriram Transport Finance (down 6%), Edelweiss Financial Services (down 4%), Bajaj Finserv & Bajaj Finance, down 4%, M&M Financial Services down 4%. 
Lana, a lot of people are talking housing crash in many markets, but that could take the whole economy down. Even with a crash, it would still be tough for buyers. The right approach to bring prices down is more housing supply. The governments should provide tax breaks and other incentives for housing development and legislation which promotes new housing projects. Good finding a place you can afford.

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.
This also means that it is a mistake to think of investors as a bunch of clueless, greed-driven lemmings falling off a cliff during a market crash. For example, during the real estate boom of the mid-2000s people kept buying homes despite an abundance of media articles pointing out that the property market was swept in a mania. There was no question, even then, that the market was overheated. So why did people continue to buy homes?
Despite fears of a repeat of the 1930s Depression, the market rallied immediately after the crash, posting a record one-day gain of 102.27 the very next day and 186.64 points on Thursday October 22. It took only two years for the Dow to recover completely; by September 1989, the market had regained all of the value it had lost in the 1987 crash. The Dow Jones Industrial Average gained six-tenths of a percent during the calendar year 1987.

The May 6, 2010, Flash Crash,[1][2] also known as the Crash of 2:45, the 2010 Flash Crash or simply the Flash Crash, was a United States trillion-dollar[3] stock market crash, which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.[4]:1 Stock indexes, such as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite, collapsed and rebounded very rapidly.[4] The Dow Jones Industrial Average had its second biggest intraday point drop (from the opening) up to that point,[4] plunging 998.5 points (about 9%), most within minutes, only to recover a large part of the loss.[5][6] It was also the second-largest intraday point swing (difference between intraday high and intraday low) up to that point, at 1,010.14 points.[4][5][7][8] The prices of stocks, stock index futures, options and exchange-traded funds (ETFs) were volatile, thus trading volume spiked.[4]:3 A CFTC 2014 report described it as one of the most turbulent periods in the history of financial markets.[4]:1
What on earth could be responsible for such optimism? After all, the oft-repeated adage that Trump’s tax cuts have been feeding the bulls on Wall Street has run its course. The tax cuts have not been approved and with the divide in Congress—a divide also within Republicans themselves—there’s little chance of the major reductions occurring. Moreover, the U.S. debt now exceeds $20.0 trillion.
None of the research however, seems to be applied to human expectations, human happiness, and human panic. Human’s don’t pay attention to historical trends and data, nor what AI systems advise. They generally pay attention to now just like herding animals before a stampede. The signal that sets the herd off, could be one or two animals stumbling over a pothole.
In Berkshire's 2017 shareholder letter, Buffett outlined four times when Berkshire stock fell 37% or more, representing what he called "truly major dips." The biggest decline occurred from March 1973 to January 1975, when Berkshire stock declined a whopping 59%. "In the next 53 years our shares (and others) will experience declines resembling those in the table," Buffett said about these four major declines. "No one can tell you when these will happen. The light can at any time go from green to red without pausing at yellow.

2015–16 stock market selloff 18 August 2015 The Dow Jones fell 588 points during a two-day period, 1,300 points from August 18–21. On Monday, August 24, world stock markets were down substantially, wiping out all gains made in 2015, with interlinked drops in commodities such as oil, which hit a six-year price low, copper, and most of Asian currencies, but the Japanese yen, losing value against the United States dollar. With this plunge, an estimated ten trillion dollars had been wiped off the books on global markets since June 3. [30] [31] [32]
Everyone seems to have an explanation for why stock prices rise and fall. People are happy about the economy. People are worried about the economy. People want interest rates to rise. People want interest rates to fall. Europe looks good. Europe looks bad. Canada's raising tariffs. Canada reported extraordinary growth. Company A met its earnings goals. Company B didn't. Inflation numbers looked bad. Inflation numbers looked good. Gold is hot. Silver prices fell. Oil supplies are running low—or high. Unemployment numbers changed too much or too little. Euros went up against the dollar. Who knows?
On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid "22 criminal counts, including fraud and market manipulation" [10] against Navinder Singh Sarao, a trader. Among the charges included was the use of spoofing algorithms; just prior to the Flash Crash, he placed thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later.[10] These orders amounting to about "$200 million worth of bets that the market would fall" were "replaced or modified 19,000 times" before they were canceled.[10] Spoofing, layering, and front running are now banned.[3]
Rather than trying to time the market, which is incredibly hard to do and often counterproductive, it can be helpful to remember that the attractive long-term returns to the stock market include many market crashes. Depending on your measurement criteria, time-period and exactly what index you look at well-diversified portfolio have averaged returns of around 6%-10% a year over time.
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