What is commercial paper ? Commercial paper is a money - market security issued by large corporations to obtain funds to meet short-term debt obligations and is backed only by an issuing bank or company promise to pay the face amount on maturity date specified on the note . Since it is not backed by collateral , only firm with excellent credit ratings from a recognised credit rating agency will be able to sell their commercial papers at reasonable price .Commercial paper is usually sold at a discount from face value , and generally carries lower interest repayment rates than bonds due to shorter maturities of commercial paper .
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.
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.
By that year, Gutman wrote, "Video games were officially dead and computers were hot". He renamed his magazine Computer Games in October 1983, but "I noticed that the word games became a dirty word in the press. We started replacing it with simulations as often as possible". Soon "The computer slump began ... Suddenly, everyone was saying that the home computer was a fad, just another hula hoop". Computer Games published its last issue in late 1984. In 1988, Computer Gaming World founder Russell Sipe noted that "the arcade game crash of 1984 took down the majority of the computer game magazines with it." He stated that, by "the winter of 1984, only a few computer game magazines remained," and by the summer of 1985, Computer Gaming World "was the only 4-color computer game magazine left."
In a less extreme market—for example, one where the Warren Buffett Indicator is around 100 or less—the risks are easier to identify, count, and classify. But in a situation where this indicator is approaching 140%, it’s clear that we’re long past the realm of logic. The markets are ignoring all risks while the Dow keeps climbing. Yet, there is one major risk at the macro level that could slam open the doors for a crash.
Shares in public companies can be traded. The stock market is just like any market. Think of the ASX as Gumtree, but for pieces of ownership of massive companies. When shares change hands, the buyer and seller agree on a price, and we find out the share price. We get a new share price every time a new trade happens (which can be hundreds of times a minute). Over time that share price can go up or down.
“One of the lessons that we all learned over and over again is try to cut through the noise and get to the fundamental driver of the stock market,” said Rich Weiss, chief investment officer and senior portfolio manager of multi-asset strategies at American Century Investments. “And the major driver has been, is, and will continue to be the strength of our economy.”
It is not a big surprise, however, that many investors today remain interested in the forecasts of financial analysts regardless of their success. Humans in the past consulted oracles, crystal balls and tea leaves. It’s in our nature: As the proverb goes, “tell me a fact, and I'll learn; tell me a truth, and I’ll believe; but tell me a story and it will live in my heart forever.” We are attracted to story-telling, and when it comes to investing we seem to be searching for the most compelling narratives about the unknowable future, regardless of how accurate they turn out to be.
The share price of DHFL plunged as much as 60 percent to hit a fresh 52-week low of Rs 246.25 amid high volumes before paring losses to end down 43 percent. Yes Bank slumped as much as 34 percent before recovering to close down 29 percent. Stocks of Indiabulls Housing Finance and LIC Housing Finance were also down by over 20 percent and 15 percent, respectively, at one point. Shares of Bajaj Finance and Bajaj Finserv too took a hit.
The full effects of the industry crash would not be felt until 1985. Despite Atari's claim of 1 million in sales of its 2600 game system that year, recovery was slow. The sales of home video games had dropped from $3.2 billion in 1982 to $100 million in 1985. Analysts doubted the long-term viability of the video game industry, but following the release of the Nintendo Entertainment System, the industry began recovering, with annual sales exceeding $2.3 billion by 1988, with 70% of the market dominated by Nintendo. In 1986, Nintendo president Hiroshi Yamauchi noted that "Atari collapsed because they gave too much freedom to third-party developers and the market was swamped with rubbish games". In response, Nintendo limited the number of titles that third-party developers could release for their system each year, and promoted its "Seal of Quality", which it allowed to be used on games and peripherals by publishers that met Nintendo's quality standards.
The fat-finger theory: In 2010 immediately after the plunge, several reports indicated that the event may have been triggered by a fat-finger trade, an inadvertent large "sell order" for Procter & Gamble stock, inciting massive algorithmic trading orders to dump the stock; however, this theory was quickly disproved after it was determined that Procter and Gamble's decline occurred after a significant decline in the E-Mini S&P 500 futures contracts. The "fat-finger trade" hypothesis was also disproved when it was determined that existing CME Group and ICE safeguards would have prevented such an error.
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.
The May 6, 2010, Flash Crash, also known as the Crash of 2:45, the 2010 Flash Crash or simply the Flash Crash, was a United States trillion-dollar stock market crash, which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.:1 Stock indexes, such as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite, collapsed and rebounded very rapidly. The Dow Jones Industrial Average had its second biggest intraday point drop (from the opening) up to that point, plunging 998.5 points (about 9%), most within minutes, only to recover a large part of the loss. 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. The prices of stocks, stock index futures, options and exchange-traded funds (ETFs) were volatile, thus trading volume spiked.:3 A CFTC 2014 report described it as one of the most turbulent periods in the history of financial markets.:1
Neil Kashkari talks extensively about false prophets (Alan Greenspan) and the sources of market bubbles such as $100 barrel oil, and other uncontrollable situations. He says market bubbles and crashes are very complex and the source is often completely unexpected. Could the oil sheiks take the US economy down again? Could China do it? Is the $20 Trillion debt a threat? Or is just the end of a bull run in the stock market?
On May 6, 2010, U.S. stock markets opened and the Dow was down, and trended that way for most of the day on worries about the debt crisis in Greece. At 2:42 p.m., with the Dow down more than 300 points for the day, the equity market began to fall rapidly, dropping an additional 600 points in 5 minutes for a loss of nearly 1,000 points for the day by 2:47 p.m. Twenty minutes later, by 3:07 p.m., the market had regained most of the 600-point drop.:1
It’s hard prepping on limited funds especially with young children, believe me I know. Every two weeks when I get groceries I take an extra $20 and get basic staples to store in my emergency pantry. It doesn’t seem like much but it adds up especially If you use it a Aldis, shop n save, etc. Then when I have extra cash I use it on the other important things besides food. Just keep going your doin a lot better than most. Your kids will thank you for it. 🙂
Martial law is now implemented, the Natzi cabal suspends the election, and congratulate Donal Trump for his PR stunt, and he laughs his ass off because he happy to finally see the New World Oder commensing. Mr, you should see what we do to tritors, in regard to Edward Snowden. The drones have the locations of the people of interest and begin tactical strikes in broad daylight on veterans, patriots, whites, etc. MS 13, he mexican army, the jihadist enter Texas and start launch attacks, russain pulls into the Texas guld and does and anphibian invasion, China attacks Texas with the Mexacn army from the south, the russians come down from Colorado from the East North and south. Not a nice time or place to be in as i see.
Hi Lavanya. Some believe the sky over Toronto will fall in 2018, but with rentals disappearing, it’s safe to say rental income property owners will get their price. Prices won’t go down, and may actually boom if the economy takes off in 2018. Buying a rental income property, living in the upper floor and getting tenants to help with the mortgage is just plain smart. That helps with the housing crisis as well! Good luck with your rental property.
Take no action at all. If you have a good portfolio plan in place, the smartest move to make in a tough market environment is to stay the course. The worst thing you can do is to jump out of the stock market. That's because the chances are you'll still be on the sidelines when the market picks up again. That's called "market timing" and even professional traders usually can't figure out when stocks will rise again. By remaining in the market you'll be assured of being there when the market rebounds -- as it always does, historically.
In Professor Sornette’s model, a bubble is a market heading to a critical point. But a crash is not the only possible post-crisis outcome: Prices can also stop rising and reach a higher plateau. It is precisely because of the small but real probability that a bubble will not crash but simply stop growing that it is rational for some investors to stay in the market, even when if they think that it has gone too far, too fast.
Marc, I hope you and your kids can stay in So Cal, but can you see how the money and people are being vilified for wanting to be part of California’s successful economy and lifestyle. The real villains are those who are preventing development. And that new development really drives the economy, thus giving California a chance to compete in the global age. Other cities in Canada and the UK have the same problem and in each case it’s politicians squeezing supply. And the actions they’re taking does point to a recession eventually. If California’s polticians remove constraints, you’ll have lower prices in San Diego, LA and the SF Bay Area. The market alway solves itself.
Its pretty obvious she's completely failed. She may as well have said she never wrote the current Brexit deal, Barnier did or Merkel did. In more enlightened times her head would be on a spike by now, down by the Thames. But what do we expect from just the latest traitor to Sovereignty on the list, that includes: Heath, Major, Brown and the rest . . We need a new broom to sweep all this rubbish away, once and for all . .
Second, given that the effect of tariffs is to make imported goods more expensive so as to reduce the amount of goods imported, China may retaliate by imposing its own tariffs. Who knows what those will be? Whatever the case, this will make US goods less attractive in Chinese markets, and US companies relying on sales in China will end up making less money.
It’s beyond Black Monday. The next stock market crash will combine the effects of Black Monday with the tech bubble of 1999-2000 and the recession that resulted from the crash of 2007-2008. The Shiller CAPE ratio, which measures a stock’s performance by comparing its price against earnings over a 10-year period, has reached the very point when Alan Greenspan pronounced his famous “irrational exuberance” speech. (Source: “The stock market’s valuation is back to the point where Greenspan warned of ‘irrational exuberance’,” CNBC, October 31, 2017.)
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).
So aim to build a war chest for a future market meltdown by accumulating cash. It's probably best not to overdo it, though, because the market may not crash for another few years, in which time all the cash you've amassed will not have been growing for you in stocks. You might just accumulate enough cash to establish meaningful positions in a few stocks. In general, it can be good to have no more than 10% of your overall net worth in cash for investments.
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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.
Buy when others sell. Historically, stocks rebound much higher than their price levels just before a bear market. This was the case in 1987, 1990, 2001, and in 2008 (just after the Great Recession began) after severe market collapses in those years. By contributing regularly to your 401k plan, your IRA plan and your stock and mutual fund investments, you're "buying at the dip," as Wall Street traders like to say. That means you're buying when prices are low, thus giving you significantly more bang for your investment buck. Remember, stocks become overpriced as bull markets mature. They become cheap in bear markets.
After a very brief rally earlier in the week, stocks have been getting hammered again. The S&P 500 has now fallen for 9 out of the last 11 trading sessions, and homebuilder stocks have now fallen for 19 of the last 22 trading sessions. It was a “sea of red” on Thursday, and some of the stocks that are widely considered to be “economic bellwethers” were among those that got hit the hardest…
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?"
Editor’s Note: The following article has been contributed by Daisy Luther at The Organic Prepper web site. As always, Daisy has put together an excellent primer detailing the conditions we currently face, potential outcomes, and strategies you can implement to prepare for an inevitable crash in not just stocks markets, but the way of life we have come to know in America.
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.
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.
Consequently, we believe, that irrespective of technology, markets can become fragile when imbalances arise as a result of large traders seeking to buy or sell quantities larger than intermediaries are willing to temporarily hold, and simultaneously long-term suppliers of liquidity are not forthcoming even if significant price concessions are offered.
Though, again, that may be generally true, at times of severe market moves, surprisingly, often there is very little new news to justify the price change. Research on what moves stock prices, has found that prices can often move a lot without news. Also, in his book Irrational Exuberance, Robert Shiller finds that one of the biggest stock market moves of all time, 1987's Black Monday decline wasn't driven by any obvious economic event. Therefore, it's not clear that market crashes are the result of some unanticipated bad news that shocks investors.