It was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.[1] The crash, which followed the London Stock Exchange's crash of September, signalled the beginning of the 12-year Great Depression that affected all Western industrialized countries.[2]
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.
The failure set off a worldwide run on US gold deposits (i.e. the dollar), and forced the Federal Reserve to raise interest rates into the slump. Some 4,000 banks and other lenders ultimately failed. Also, the uptick rule,[37] which allowed short selling only when the last tick in a stock's price was positive, was implemented after the 1929 market crash to prevent short sellers from driving the price of a stock down in a bear raid.[38]
While the note's warnings are ominous and contradict many other more rosy outlooks for the current bull market, the London-based fund was on point in calling February's market correction weeks before it happened. Filia told CNBC in late January that stock valuations were in "bitcoin territory," "totally disconnected from fundamentals," and that markets were on the "edge of chaos."
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.

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.
Jump up ^ "Ten Facts about the Great Video Game Crash of '83". Archived from the original on May 10, 2015. Around the time home consoles started falling out of favor, home computers like the Commodore Vic-20, the Commodore 64, and the Apple ][ became affordable for the average family. Needless to say, the computer manufacturers of the age seized on the opportunity to ask parents, "Hey, why are you spending money on a game console when a computer can let you play games and prepare you for a job?"
On Friday, September 19, the Dow ended the week at 11,388.44. It was only slightly below its Monday open of 11,416.37. The Fed established the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. It loaned $122.8 billion to banks to buy commercial paper from money market funds. The Fed's announcement confirmed that credit markets were partially frozen and in panic mode.
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You might be wondering if we’ve endured one too many ghost apparitions. To suggest that no less than Warren Buffett, whose net worth is north of $80.0 billion, expects the market to reverse its bullish course seems not just scary, it seems silly. But Warren Buffett’s predictions for 2018 call for at least a market correction—if not an outright crash.
Robbins has also sold a crazy number of books. And while he may not be best known for his investing chops, he draws on the likes of Ray Dalio, Jack Bogle and others for the inspiration behind his #1 best-seller “Unshakeable: Your Financial Freedom Playbook,” which MarketWatch earlier this year counted among the eight best books about money published in 2017.
I have good reasons why i prep. I just dont have any confidence in govenment and am no convinved that covernment and city officials, etites etc are busy sitting around worry thier entitles asses off worry about me not eating or having a hard time. Or i am being too paranoid. Agency ass clowns think that you all are so dumb to relax and so that they can steer thinking by convine shtf-effers that i have bad grammar and can’t spell.
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.[23]) "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".[41]
It is just another business cycle, albeit an extended one, coming to an end: not TEOTWAWKI. Therefore it is safe to say that the downturn will be extended too because foreclosures (as an example) have not been assimilated from the last crash yet; and a new round of bankruptcies and foreclosures will follow the economic decline for those who are levered.
The failure set off a worldwide run on US gold deposits (i.e. the dollar), and forced the Federal Reserve to raise interest rates into the slump. Some 4,000 banks and other lenders ultimately failed. Also, the uptick rule,[37] which allowed short selling only when the last tick in a stock's price was positive, was implemented after the 1929 market crash to prevent short sellers from driving the price of a stock down in a bear raid.[38]
BMO’s senior economist Benjamin Tal said in a Toronto Star report on October 14th, the Ontario Government’s Places to Grow program was primarily responsible for the fast rising prices in the GTA market. He also suggests other red tape factors worsened the situation. Prices in Newmarket, Markham, Mississauga, Richmond Hill, Bradford East Gwillimbury and Aurora have definitly crashed.
Most importantly, China’s debt binge was taken up in record time; soaring by over 2,000% in the past 18 years. And this earth shattering debt spree wasn’t used to generate productive assets. Rather, it was the non-productive, state-directed variety, which now requires a constant stream of new debt to pay off the maturing debt. Therefore, the schizophrenic communist party is caught between the absolute need to deleverage the economy; and at the same time, trying to maintain the growth mirage with additional stimulus measures.

“…Low-money-down loans have been available for decades, and that is not what caused the housing crash. Really bad loans to people who should not buy houses is what caused the housing crisis. …” I’m presuming this is a ‘cliff notes’ take on the market since we can’t dispense all knowledge in a post. But my quick 2 cents. As a 2nd generation broker/investor/finance degree holder, bad loans where just a part of the problem. We had funds flowing out of other ‘under performing’ investments…e.g: $’s tend to move from CDs to collectables to stocks to real estate. I’ve owned all but stocks. Further, and this a more of a localized thing, wages must support prices. Las Vegas had speculators running up prices but buyers weren’t all from out of town so prices couldn’t be sustained. Here in NW Detroit suburbs, we are seeing a lot of new industry coming in and hence price strength above what might be healthy in other parts of MI.
The Warren Buffett Indicator is less mysterious than it sounds. It might as well be called the common-sense indicator. It’s simply the relationship between gross domestic product (GDP)—or the sum total of a country’s economic activity—and the value of stocks in the S&P 500. So, in simpler terms, the Warren Buffett Indicator in terms of Wall Street measures market capitalization versus U.S. GDP. (Source: “Why Warren Buffett Is Betting Against Warren Buffett,” Seeking Alpha, October 24, 2017.)
This is a time for contemplation; reflect on the wealth you have and keep it. Don’t gamble it away. Indeed, to describe the present scenario, it would be an insult to call it a market. It’s much more a casino. And this is where Warren Buffett’s warnings become important. It’s not so much Warren Buffett’s predictions for 2018 that count. Buffett tends to make longer-term analyses. For example, his latest major prediction is that the Dow Jones could hit 1,000,000 points in 2118. That’s well over 40 times the current number.
Eighth, once a correction occurs, the risk of illiquidity and fire sales/undershooting will become more severe. There are reduced market-making and warehousing activities by broker-dealers. Excessive high-frequency/algorithmic trading will raise the likelihood of “flash crashes.” And fixed-income instruments have become more concentrated in open-ended exchange-traded and dedicated credit funds.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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.
The New York Times then noted, "Automatic computerized traders on the stock market shut down as they detected the sharp rise in buying and selling".[25] As computerized high-frequency traders exited the stock market, the resulting lack of liquidity "caused shares of some prominent companies like Procter & Gamble and Accenture to trade down as low as a penny or as high as $100,000".[25] These extreme prices also resulted from "market internalizers",[44][45][46] firms that usually trade with customer orders from their own inventory instead of sending those orders to exchanges, "routing 'most, if not all,' retail orders to the public markets—a flood of unusual selling pressure that sucked up more dwindling liquidity".[26]
By September 1983 the Phoenix stated that 2600 cartridges "is no longer a growth industry".[9] Activision, Atari, and Mattel all had experienced programmers, but many of the new companies rushing to join the market did not have the expertise or talent to create quality games. Titles such as Chase the Chuck Wagon (about dogs eating food, funded by the dog food company Purina), Skeet Shoot, and Lost Luggage were examples of games made in the hopes of taking advantage of the video-game boom.

One particular kind of stock to give special consideration to are dividend-paying stocks. That's because they can simply be great investments on their own and also because when they fall in price, their dividend yields get pushed up. That's a matter of simple math, because a dividend yield is just a fraction -- a stock's total annual dividend divided by its recent stock price. As a simple example, imagine a company that pays out $0.25 per quarter per share, or $1 per year per share. Imagine that it's trading for $50 per share pre-crash and that it falls to $40 post-crash. The dividend stays the same -- though companies in deep trouble may indeed cut or eliminate their dividend. Divide $1 by $50 and you'll get 0.02, or a 2% dividend yield. Divide $1 by $40, and you'll get 0.025, or a 2.5% yield. If the stock falls in half, to $25 per share, its dividend yield will be 4%. That's why market downturns can be great for dividend investors -- not only are dividend yields boosted, but depressed stock prices can also be bargains, with the promise of growth when the market recovers.
The Trump tax reform plan might trigger a fall in prices that could lead to a collapse. Congress has suggested removing the deduction for mortgage interest rates. That deduction totals $71 billion. It acts like a federal subsidy to the housing market. The tax break helps homeowners have an average net worth of $195,400. That's much greater than the $5,400 average net worth of renters. Even if the tax plan keeps the deduction, the tax plan takes away much of the incentive. Trump's plan raised the standard deduction.
The absurd result of valuable stocks being executed for a penny likely was attributable to the use of a practice called "stub quoting." When a market order is submitted for a stock, if available liquidity has already been taken out, the market order will seek the next available liquidity, regardless of price. When a market maker’s liquidity has been exhausted, or if it is unwilling to provide liquidity, it may at that time submit what is called a stub quote—for example, an offer to buy a given stock at a penny. A stub quote is essentially a place holder quote because that quote would never—it is thought—be reached. When a market order is seeking liquidity and the only liquidity available is a penny-priced stub quote, the market order, by its terms, will execute against the stub quote. In this respect, automated trading systems will follow their coded logic regardless of outcome, while human involvement likely would have prevented these orders from executing at absurd prices. As noted below, we are reviewing the practice of displaying stub quotes that are never intended to be executed.
The next day, "Black Tuesday", October 29, 1929, about 16 million shares traded as the panic selling reached its peak. Some stocks actually had no buyers at any price that day ("air pockets"[citation needed]). The Dow lost an additional 30 points, or 12 percent.[11][12][13][14] The volume of stocks traded on October 29, 1929, was a record that was not broken for nearly 40 years.[12]

As longtime China watchers know, the country’s still-immature markets are in many ways more bubble-prone than their Western counterparts, thanks to heavy involvement from retail investors who often take cues from government policy, rather than quaint notions like earnings. Tanking Chinese stocks—the Shanghai Composite is now down nearly 25% from its January peak—could therefore be taken...
US data remains strong. Manufacturing conditions remained strong in the New York and Philadelphia regions and the Markit manufacturing PMI rose, the Conference Board’s leading indicator is continuing to rise, and jobless claims fell further. Housing-related data, like starts, permits and sales, doesn’t have a lot of momentum but it’s consistent with a flat/modest contribution to economic growth and at least it’s a long way from the pre-GFC housing boom that went bust.
Ok but i understand this, banks were selling Mortages for up to 100 times what they were worth even to foreign investors, right/! Ok then they were loaning the money to sell these mortages right with an interest, whereas, the loanee was paying alot of money to buy a house. right and investors were not investing in the stock market they were investing in the housing market. so then where does unemployment really take off here? why did investors suddenly pull there monies out of jobs? and when did the wealthy decide we all needed an overhaul and that disabled americans needed to go without teeth and glasses for 4 years so that the newly displaced homeowners and unemployed americans could jump on the poverty bandwagon. really!
FIDough backed this up with, “Lots of research shows that most people tend to sell near the bottom, and reenter the market after it has gone up significantly.  In other words, most people do worse by trying to protect their money from market crashes.  The truth is, if you keep on investing and stick to your rebalancing plan throughout market cycles, you will do great.”

Watched CNN and CNBC for first time in years today. Then went over to Fox for a bit.. Very little info on world market crash today.. It is stunning how information is being skewed to the masses. All they were really talking about was Trump and HilLary, and oh yes those brave American terrorist beaters. The depth of denial in our country is breathtaking. I feel like I am living in an alternate reality, the world is crashing around our ears and very few seem to give a rats ass, unbelievable. Went and had two of my rifles bore sighted , zeroing them agian at range tomorrow. Bought 500.00 of emergency food, and ordered a good solar watch I have been looking at.Picking up extra 1000 rounds of Ar, and 250 rounds for my 308. Feel like I have very little time to finish preps. I also ordered a cast iron wood stove and am picking up 4 cords of wood this weekend. I hate feeling this paranoid but damn how can one take a sane look at our world and not be. God bless and protect you all in the coming weeks.


Stock valuations aren’t extended and can support higher bond yields (the spread between the forward earnings yields and 10-Year Treasury yield is roughly 300 basis points, far above its long-term average). GDP growth is below trend, and every recession since 1970 has been preceded by above-trend GDP growth (GDP has followed a nice trend since World War II, and we are well below that trend currently due to a slow recovery from a big 2008 wipe-out). Debt levels remain reasonable and in line with long-term averages (net corporate debt to GDP is well off record highs, and simply in line with its long-term average).
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