This is a tricky and unpredictable line of thinking; you can easily get yourself tied up in knots trying to predict what other investors will think about the vague policy pronouncements some member of the Fed has made in a speech here or there. The important takeaway is simple, though: money will flow quickly to where people think they can get the biggest, least risky return. If that's not Treasury bills (and it hasn't been for a long time), it'll go somewhere else. As happened in early September 2016, the suggestion of an interest rate hike by December 2016 led to a selloff on Wall Street.

Efforts to renegotiate the North American Free Trade Agreement have proved more problematic than many in markets had hoped. Instead of ending Friday, talks with Canada will continue with expectations a deal could be reached within 90 days. Talks with Mexico had proceeded but the U.S. and Canada, as of Friday, appeared to have reached a sticking point.
Fifth, growth in the rest of the world will likely slow down – more so as other countries will see fit to retaliate against US protectionism. China must slow its growth to deal with overcapacity and excessive leverage; otherwise a hard landing will be triggered. And already-fragile emerging markets will continue to feel the pinch from protectionism and tightening monetary conditions in the US.
“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.”
The macros continue to be a worry for the markets. The trade deficit is consistent at around $18 billion per month and CAD is likely to get closer to 3% of GDP by year end. Oil prices are close to $80/bbl while the INR has already cracked close to 73/$. All these factors may force the RBI to hike the repo rates by 25 basis points to 50 basis points which is likely to be a negative factor for the stock markets. That risk also got factored into the markets on Friday. In a nutshell, with all the macro uncertainties, most traders were trying to go into the week end as light as possible.
When legions of investors try to sell, that causes further panic in the markets, and can lead to investment companies issuing "margin calls" -- calling in money lent to investors so they can buy stocks and funds -- which forces those investors to sell at current (usually low) prices to get their cash reserves to satisfactory levels to meet those demands. Over the decades, many investors have gone bust over stock market crashes --when supply trumps demand and there are more sellers than buyers.
The benchmark S&P BSE Sensex swung from a 1 percent gain to a drop of as much as 3 percent -- its wildest intraday move in more than four years -- before closing with a 0.8 percent loss. Friday’s declines showed that investors remain jittery about Indian financial shares after a recent default by Infrastructure Leasing & Financial Services Ltd. shook confidence in the sector.
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.

Having said that, it does seem like Buffett himself is paying attention and agrees that the market is generally expensive. After all, the lack of attractive investment opportunities has resulted in Berkshire Hathaway accumulating nearly $110 billion of cash and equivalents on its balance sheet. Plus, Buffett has specifically cited valuation when discussing the absence of major acquisitions lately.
Mathematicians have studied housing bubbles, such as The University of Pennsylvania, and their HOUSING BUBBLE STRUCTURAL MODEL AND HYPOTHESES models couldn’t figure it out. The factors they studied do play a role, but housing bubbles and crashes are likely a cultural phenomenon (outside of major recessions).  It comes down to values, attitudes, dreams and panic emotions.
Jump up ^ Coleco Presents The Adam Computer System. May 3, 2016 [1983-09-28]. Event occurs at 44:30. Archived from the original on January 3, 2017. We're doing that with five new television commercials, which have just been completed, and which will be shown in conjunction with the Adam launch date. These commercials are each directed to our target audience, which is composed of our friendly neighborhood children, boys age 8 to 16 and their fathers. We believe those are the two groups that really fuel computer purchases, [boos] and we've directed right at 'em [more boos] - oh, sorry, sorry, sorry, sorry. Women, we've a commercial for you, trust me, but the key point is that our research, which is consumer research, directed that thought [inaudible] from the research, and we've directed our commercials at that target user group.
The economy had been growing for most of the Roaring Twenties. It was a technological golden age, as innovations such as the radio, automobile, aviation, telephone, and the power grid were deployed and adopted. Companies that had pioneered these advances, like Radio Corporation of America (RCA) and General Motors, saw their stocks soar. Financial corporations also did well, as Wall Street bankers floated mutual fund companies (then known as investment trusts) like the Goldman Sachs Trading Corporation. Investors were infatuated with the returns available in the stock market, especially by the use of leverage through margin debt.
The content on is intended for educational purposes only and should not be construed as investment or tax recommendation. Trading and investing involves substantial financial risk. We have business relationships with some of the products and services mentioned on this site and we may be compensated if you choose to sign up for products through links in our content. Full disclaimer.
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.
My guess is we’ll see a continued decline overall this fall with the luxury market seeing a bigger drop. The liberal’s vacant home tax would be pathetic, just a psychological tactic to scare away Asian buyers. The overall Canadian market isn’t strong which indicates the economy isn’t great. The Toronto market has a lot of downward momentum that could continue right through to spring. Vancouver has bounced back from government meddling so maybe by spring Toronto can do it too. Can Toronto continue to be isolated from the Canadian economy? The NAFTA deal is what could send the Toronto Housing Market and the economy crashing. Overall, homeowners would be wise to sell because prices are high and availability limited. Why wait for lower prices in 6 months?
Given how strong demand in the GTA is, a Toronto housing crash is little outlandish.  Despite issues related to the Federal government, the enormous unfulfilled demand for housing (i.e. affordable housing) will ensure prices can’t drop. While price growth has been mostly evident in the city of Toronto, other regions still have a long way to recover from 2017.  The economic uncertainties of Ontario and Canada aren’t dampening buyer spirits.
In putting this into practice today, let’s assume we have $100,000 invested in equities currently so we need to buy $500 in 2-month put options (0.5% of $100,000) that are 30% below the current underlying price. SPY trades at 219.4 as I write this so $154 is about 30% beneath this price. A small segment of the October 21 put options chain is below (from Yahoo!Finance). Looking at the ask prices and volume it looks like the 155 puts are a bit more liquid and better priced than the 154 puts. At $9 each (9c times 100 shares) we can buy 55 of the October 155 put options for $495.

While some areas such as the 905 have seen big drops, (houses are sitting and have to be rented now) areas in Toronto have maintained prices.  These neighbourhoods offer a more reliable bet for sustainable property investment value. Many property investors have discovered the hard way, what the word sustainable means in bottom line dollar terms. Because of demand, two hot areas right now are rental property investment and student housing investment.

Adding to the problem is that much of the Chinese private debt is pledged with collateral from the stock market, which has been in free-fall this year. According to Reuters, more than 637 billion shares valued at $4.44 trillion yuan ($639.86 billion) were pledged for loans as of Oct. 12. As the air continues to pour out of the stock market, it will put additional pressure on the debt market.

Accolade achieved a technical victory in one court case against Sega, challenging this control, even though it ultimately yielded and signed the Sega licensing agreement. Several publishers, notably Tengen (Atari), Color Dreams, and Camerica, challenged Nintendo's control system during the 8-bit era by producing unlicensed NES games. The concepts of such a control system remain in use on every major video game console produced today, even with fewer "cartridge-based" consoles on the market than in the 8/16-bit era. Replacing the security chips in most modern consoles are specially encoded optical discs that cannot be copied by most users and can only be read by a particular console under normal circumstances.
Hi Mike, I would say yes, see the post on those trends. Milton has no room to grow with everyone wanting to live there. They’ll get the free trade deal resolved and Doug Fords new plan to expand northward into farm country will stimulate the economy like crazy. Detached in Mississauga/Milton are rare finds so not surprising Milton has the 3rd lowest days on market in the GTA. Once Ford is in, the prices will rise because he probably will turn the economy on.

The critical point where bubbles end happens as investors begin to think that the rally is over. It is when this opinion travels deep into the system and becomes generalized that the system ends up in a crash. The paradox here is that a crash is often (and mistakenly) characterized as “market chaos.” In fact, it is the opposite: a crash reflects a highly ordered market, when everyone does the same thing (i.e. sell). A truly “chaotic” market is one where everyone is doing something different, interactions offset each other and price volatility remains low.
As of July 2011, only one theory on the causes of the flash crash was published by a Journal Citation Reports indexed, peer-reviewed scientific journal.[50] It was reported in 2011 that one hour before its collapse in 2010, the stock market registered the highest reading of "toxic order imbalance" in previous history.[50] The authors of this 2011 paper apply widely accepted market microstructure models to understand the behavior of prices in the minutes and hours prior to the crash. According to this paper, "order flow toxicity" can be measured as the probability that informed traders (e.g., hedge funds) adversely select uninformed traders (e.g., market makers). For that purpose, they developed the Volume-Synchronized Probability of Informed Trading (VPIN) Flow Toxicity metric, which delivered a real-time estimate of the conditions under which liquidity is being provided. If the order imbalance becomes too toxic, market makers are forced out of the market. As they withdraw, liquidity disappears, which increases even more the concentration of toxic flow in the overall volume, which triggers a feedback mechanism that forces even more market makers out. This cascading effect has caused hundreds of liquidity-induced crashes in the past, the flash crash being one (major) example of it. One hour before the flash crash, order flow toxicity was the highest in recent history.
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.[13] 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."[20]

Nintendo reserved a large part of NES game revenue for itself by limiting most third-party publishers to only five games per year on its systems (some companies tried to get around this by creating additional company labels like Konami's Ultra Games label); Nintendo would ultimately drop this rule by 1993 with the release of the Super Nintendo Entertainment System.[50] It also required all cartridges to be manufactured by Nintendo, and to be paid for in full before they were manufactured. Cartridges could not be returned to Nintendo, so publishers assumed all the financial risk of selling all units ordered. As a result, some publishers lost more money due to distress sales of remaining inventory at the end of the NES era than they ever earned in profits from sales of the games.
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 $29,121. Those who engage in market timing may be out of the market after downturns, missing some of the best days while waiting for a recovery to be clearly under way.
The Indian rupee strengthened further against US dollar in the early afternoon deals on Friday following the sustained weakness in the crude oil prices. The domestic currency (rupee) extended morning gains on Friday and hit a fresh 2-week high at 71.7663, up 62 paise per unit US dollar, the Bloomberg data showed. The rupee is trading 120 paise higher from the all-time low of 72.97 apiece US dollar. Earlier on Tuesday this week, the rupee went very close to hitting 73/$ and made a record low at 72.9675 against US dollar. 

In July 2008, the crisis threatened government-sponsored agencies Fannie Mae and Freddie Mac. They required a government bailout. The Treasury Department guaranteed $25 billion of their loans and bought shares of Fannie's and Freddie's stock. The Federal Housing Authority guaranteed $300 billion in new loans. On July 15, the Dow fell to 10,962.54. It rebounded and remained above 11,000 for the rest of the summer.
At the same time, affordable housing has plummeted. In 2010, 11 percent of rental units across the country were affordable for low income households. By 2016, that had dropped to just 4 percent. The shortage is the worst in cities where home prices have soared. For example, Colorado's stock of affordable rentals fell from 32.4 percent to only 7.5 percent since 2010. 
Statistically, September is the worst month of the year for stocks, and while the S&P 500 is up about 8.5 percent so far this year, strategists say what's ahead this fall could challenge those gains, including the U.S. midterm elections. August is often wobbly too, but this year's 3 percent S&P gain was the best performance for the month in four years.
Another reason for sudden fall is IL&FS debt crisis . It has defaulted over 3 payments this month . Since alot of banks have exposure to it's 90,000 crore debt, banking stocks are also seeing a sell off owing that they may to write off this amount . Although LIC has come to it's rescue by buy agreeing to subscribe to it's right issue ,but only the time would tell whether they will able to save this crisis or not.
“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.”
Stock up on supplies.  Make sure you are prepped. If you’re behind on your preparedness efforts and need to do this quickly, you can order buckets of emergency food just to have some on hand. (Learn how to build an emergency food supply using freeze dried food HERE) Hit the grocery store or wholesale club and stock up there, too, on  your way home.
Until 1982, few third-party console games existed other than Activision's. Imagic and Games by Apollo demonstrated their own 2600 cartridges in January 1982, and Coleco announced several 2600 and Intellivision games. Parker Brothers, CBS Video Games, and Mattel also announced 2600 cartridges at the February Toy Fair, and Coleco announced the ColecoVision. At the Summer 1982 Consumer Electronics Show, 17 companies including MCA Inc. and Fox Video Games announced 90 new Atari games.[25] By 1983, an estimated 100 companies were vying to get a foothold in the video game market.[4]
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:

That being said, the Buffett Indicator, while it's not a flawless indicator, does tend to peak during hot stock markets and bottom during weak markets. And as a general rule, if the indicator falls below 80%-90% or so, it has historically signaled that stocks are cheap. On the other hand, levels significantly higher than 100% can indicate stocks are expensive.
Even after the turnaround began in March 2009, it's not as if investors knew the bear had run its course. The S&P dropped by more than 15% in 2010 and by almost 20% in 2011. We know now that these setbacks were temporary speed bumps (albeit scary ones) within a new bull market. But investors back then didn't have the advantage of being able to consult a stock chart, as we can today, that showed them how it all played out.

It is impossible to know for sure what the housing market will do. It will eventually go down, as it cannot go up forever, but the question is when will that happen and by how much? I feel that this market is driven by solid demand, solid lending guidelines. Couple that with low inventory and we will continue to see prices increase. If the builders start building like crazy, I would start to worry about another decline.

In 1907 and in 1908, the NYSE fell by nearly 50% due to a variety of factors, led by the manipulation of copper stocks by the Knickerbocker company.[21] Shares of United Copper rose gradually up to October, and thereafter crashed, leading to panic.[22][23] A number of investment trusts and banks that had invested their money in the stock market fell and started to close down. Further bank runs were prevented due to the intervention of J.P.Morgan.[24] The panic continued to 1908 finally and led to the formation of the Federal reserve in 1913.[25]

Surging oil prices: Oil has been rallying as worries about Iran sanctions, which kick in on November 4, threaten global supply. International crude oil benchmark Brent yesterday hit a four-year high of $86.74 a barrel. Given that India is the world's third largest oil consumer, and heavily dependent on imports to boot, this is the biggest threat to the domestic economy.
Investors bore the emotional scars from the crash for the next four years. On June 1, 2012, they panicked over a poor May jobs report and the eurozone debt crisis. The Dow dropped 275 points. The 10-year benchmark Treasury yield dropped to 1.443 during intraday trading. This was the lowest rate in more than 200 years. It signaled that the confidence that evaporated during 2008 had not quite returned to Wall Street. 
Another thing you can do if you're anticipating a market crash is to include a bunch of defensive stocks in your portfolio, as they tend to get less punished during a market downturn. Defensive stocks belong to companies whose fortunes aren't very tied to the economy's movements. For example, people might put off buying refrigerators or cars during a recession, but they'll still buy groceries, socks, soaps, gas, medicine, electricity and diapers. Thus, food, tobacco, energy, and pharmaceuticals are some defensive industries, seen as more stable than their "cyclical" counterparts, such as the homebuilding, steel, automobile, and airline industries. You don't have to avoid cyclical industries in your investing, but know that they can move sharply in relationship to the economy.
Another reason for sudden fall is IL&FS debt crisis . It has defaulted over 3 payments this month . Since alot of banks have exposure to it's 90,000 crore debt, banking stocks are also seeing a sell off owing that they may to write off this amount . Although LIC has come to it's rescue by buy agreeing to subscribe to it's right issue ,but only the time would tell whether they will able to save this crisis or not.
The 1987 Stock Market Crash was really huge and resulted in millions of people to lose wealth. The reforms that were introduced needed to be strictly followed so that the market could get over the losses soon. To date, the 1987 stock market crash is mentioned to be one of worst crashes in the history of stock trading. After the 1929 stock market crash this was the biggest crash to occur resulting in a huge loss.
September is also when the Fed is next expected to raise interest rates, and its post-meeting statement Sept. 26 and comments from Fed Chairman Jerome Powell could signal how strongly the Fed views its forecast for a December hike. David Ader, chief macro strategist at Informa Financial Intelligence, said Powell was not as dovish at Jackson Hole last week as some may have thought.
Consumer Financial Protection Bureau Federal Deposit Insurance Corporation Federal Home Loan Banks Federal Housing Administration Federal Housing Finance Agency Federal Housing Finance Board Federal Reserve System Government National Mortgage Association Irish Bank Resolution Corporation National Asset Management Agency Office of Federal Housing Enterprise Oversight Office of Financial Stability UK Financial Investments
HELL ONFRICKING EARTH AND THE END OF ALL LIFE ON EARTH AS WE KNOW IT IS NOW LITERALLY UP IN OUR FACES, JESUS HELP OUR SORRY ASSES THAT WE are in the 3-5,000,000 shtf survivors. Then comes Planet X, Nibiru showing up in April 2016, tips the poles on the plante 24′, erases the planets magnetic field, meltdown the ice caps and causes 1000 mph fu.///i…g winds trashing up the entire city centers of the all countries of the globe. Flooding, windstorm, hail, Hurricane, sunamis, etc, Crop destruction, anmimals running and migrating to the center of the Country to safe areas, futher depleting animal stocks in coastline cites, leaving the only avaible meat source to eat, fat, larger over women and men who did not prep, now the new food source to sustain the Dred Lock and lantino, ganstar drug dealing survivors.

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.

Even after the turnaround began in March 2009, it's not as if investors knew the bear had run its course. The S&P dropped by more than 15% in 2010 and by almost 20% in 2011. We know now that these setbacks were temporary speed bumps (albeit scary ones) within a new bull market. But investors back then didn't have the advantage of being able to consult a stock chart, as we can today, that showed them how it all played out.
According to data from Equifax in August 2017, deep subprime auto loans -- i.e., loans with an origination VantageScore of 530 or less, on a scale of 300 to 850 -- have hit delinquency rates that hadn’t been seen since 2007. Interestingly enough, when examining the auto market as a whole, no red flags arise in terms of delinquency rates. But if you focus solely on subprime and deep subprime loans, they’ve been deteriorating of late. 
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.
The joint report continued: "At 2:45:28 p.m., trading on the E-Mini was paused for five seconds when the Chicago Mercantile Exchange ('CME') Stop Logic Functionality was triggered in order to prevent a cascade of further price declines. In that short period of time, sell-side pressure in the E-Mini was partly alleviated and buy-side interest increased. When trading resumed at 2:45:33 p.m., prices stabilized and shortly thereafter, the E-Mini began to recover, followed by the SPY".[41] After a short while, as market participants had "time to react and verify the integrity of their data and systems, buy-side and sell-side interest returned and an orderly price discovery process began to function", and by 3:00 p.m., most stocks "had reverted back to trading at prices reflecting true consensus values".[41]
The second biggest crash in global markets occurred in 2008. It was preceded by a housing market crash which led two Wall Street banks, Bear Stearns and Lehman Brothers declaring bankruptcy. By 2008 the world economy was so interconnected that the market crash led to a global financial crisis. Although it wasn’t the largest crash in percentage terms, it was the largest drop in terms of value in the history of the New York Stock Exchange.

“My view is that the markets are extremely overvalued, and can fall even 2,000 points from here. (Sensex). The Nifty can correct by about 1,000 points. Nothing has changed fundamentally, I mean we have the same macro-economic situation, etc, but when a sell-off happens, nobody can predict. Financials, especially NBFCs are overvalued,” Rajat Sharma, founder, Sana Securities told FE Online.
Ideally, at the start of your investment journey, you did risk profiling. If you skipped this step and are only now wondering how aligned your investments are to your temperament, that’s OK. Measuring your actual reactions during market agita will provide valuable data for the future. Just keep in mind that your answers may be biased based on the market’s most recent activity.
Hi Sandy, I was just reading a post on about how happy a couple who invested in rental housing investors were. They got their mortgage paid off and were living a lifestyle with retirement they couldn’t get any other way. If you’re becoming a landlord, make sure you do tenant screening really well. The economy in the Hamilton area and the housing market have been the best anywhere. It’s an excellent area with the escarpment and everything. Assuming you can afford the property, there are plenty of high paying tenants available. The rental squeeze won’t end, so you can pick and choose. Long term, it’s the smartest move to make. Unless, your tenant is prone to financial difficulty. One room for yourself? You’d better make a separate entrance thing, do it right, and it should change your life. Take a look at my posts over at ManageCasa and get immersed in the world of property management. Even if the market collapses, you’ll likely be fine if you manage your finances well. You can afford this right?
At first, while the regulatory agencies and the United States Congress announced investigations into the crash,[16] no specific reason for the six hundred point plunge was identified. Investigators focused on a number of possible causes, including a confluence of computer-automated trades, or possibly an error by human traders. By the first weekend, regulators had discounted the possibility of trader error and focused on automated trades conducted on exchanges other than the NYSE. However, CME Group, a large futures exchange, stated that, insofar as stock index futures traded on CME Group were concerned, its investigation found no evidence for this or that high-frequency trading played a role, and in fact concluded that automated trading had contributed to market stability during the period of the crash.[17] Others speculate that an intermarket sweep order may have played a role in triggering the crash.[18]
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.