These volumes of trading activity in 2011, to some degree, were regarded as more natural levels than during the financial crisis and its aftermath. Some argued that those lofty levels of trading activity were never an accurate picture of demand among investors. It was a reflection of computer-driven traders passing securities back and forth between day-trading hedge funds. The flash crash exposed this phantom liquidity. In 2011 high-frequency trading firms became increasingly active in markets like futures and currencies, where volatility remains high.[83]
Obviously, if the market crashes, it's a good time to go shopping for bargains. The stocks tied to lots of wonderful businesses are likely to be depressed -- perhaps significantly so. But if you don't have some ready cash (or access to cash) to take advantage of that, you could be out of luck. Or you might find yourself selling out of some stocks at depressed prices (thus realizing losses or shrunken gains) in order to snap up shares of more compelling stocks. That's not ideal.
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.

Ultimately, if there is a going to be a full-blown collapse of the stock market right now, we would need some sort of “kick off event” in order to make that happen.  It would have to be something on the scale of another 9/11, the collapse of Lehman Brothers, an unprecedented natural disaster, the start of a major war or something else along those lines.
Is funny, the tropical depression is well away from us but we are getting an extremely wet weather system over the state, they call it an anti-cyclone, whatever that is, all i know is i could use some sunshine, been raining for weeks, only one or two days here and there that didnt rain. Too damn wet, crops rotting in the field, at least the market crops, oh well, such is life as a farmer!
With IL&FS getting closer to an absolute liquidity crunch and defaulting on its ICDs and CPs, the RBI has started tightening the vigilance on banks and other financial institutions. For starters, the RBI asked banks to be cautious about buying HFC bonds considering their exposure to IL&FS debt. IL&FS has outstanding debt to the tune of $12.5 billion and the market is rife with news that most of the HFCs have large exposure to IL&FS debt. Of course, the promoters of Indiabulls and DHFL have denied any exposure but the news refuses to go away. The mood was also sourced by a large Indian mutual fund selling DHFL bonds in the market at an above-market yield of almost 11%. That also took its toll on the markets.
So take this time to go over your holdings and tally up how much you have in stocks and how much in bonds. If you're not sure of the asset make-up in some of your investments — which may be the case if you own funds that invest in a combination of stocks and bonds — plug the names or ticker symbols of your funds into Morningstar's Instant X-Ray tool, and you'll see how your portfolio overall is divvied up between stocks, bonds and cash.
Jesazzzz Koverist. This means that post calapse, the city air will be unbreathable from all the garbage, rotting and decaying stinking dead bodies all over all the major cities, meaning that, the DUMB-F…k survivors, these are the New Preppers, who were not preppers, who jus scavenged, tore up the restaurants, fast food joints, distribution centers, possible white, middle class, people who laughed at us prepper types, who went, damn, lets get all the food and water now, we are clearing the f…k out of town to the country. Now we can see if we awesome preppers who were able to GTFOT, GET THE F… OUT OF TOWN TYPES. then we preppers can see literally, get this millions, 50,000,000 plus, fleeing the cities, jamed up on the freeways with Jade Helm 15, russian and chinses soldiers at check points grabbing people, shooting the men point blank range and grabbing women and children off the freeways, gun ships and drones all the sky, tanks, and other military equipment suddenly rolled out on the streets of all the major cities shooting the men on all the major freeways in all the major cities. Trapped Patriots, veterans and Local Red Necks and new Freedom fighters of all races, black, white, hispanic, asain and other unreconizable nationals that we dont or cant tell wtf? there are, now engaged in gun battles against one another. The kind of situation, that even tough guys like myself litterally loose bladder control, and piss my pants at the mere taught of it. As we literally witness the first stage of calapse.
Be prepared for the potential of civil unrest. If the banks put a limit on withdrawals (or close like they did in Greece) you can look for some panic to occur. If the stores dramatically increase prices or close..more panic. Be armed and be prepared to stay safely at home. (Although this article was written during the Ferguson race riots, civil unrest follows a similar pattern regardless of the cause.)
Of course, sometimes something happens. On June 23, 2016, voters in the United Kingdom voted for their country to leave the European Union. Membership in the EU means improved trade policies, less friction around goods and services and people moving across borders, and (despite the economic kerfuffle around different economic strengths and weaknesses between member countries) a general sharing of wealth from multiple countries all working more or less together.
Network snapshots before (left) and during (right) the simulated flash crash. The last 400 transactions in the order-book are plotted by connecting the HFT agents who transact with each other. The node color indicates the inventory size of the HFT agent. When the market operates normally (left subplot), almost all of the HFT agents are in control of their inventory (greenish color). In crash period (right), most of the HFT agents gain large inventories (red) and the network is highly interconnected: over 85 percent of the transactions are HFT-HFT.[51]
Secondly, he says, higher interest rates raise borrowing costs for consumers and companies, so auto loans and mortgages become more expensive and companies have a harder time tapping the debt market. "Clearly, higher rates are not good for housing or auto sales," says Ed Yardeni, chief investment strategist at Yardeni Research. And if sales of these big-ticket items slow, so does the broader economy.
This begs the salient question: How much lower will the growth rate of earnings be in 2019 for the S&P 500? Earnings growth in 2018 peaked at 25%. However, with the top global economies all rolling over, peak corporate margins, trade wars, the waning of repatriation and stock buybacks, soaring worldwide debt and trillion dollar U.S. deficits, mounting rate hikes from global central banks and a Fed that is destroying $600 billion this year through its reverse QE program, it is doubtful that there will by any earnings growth at all next year. Nevertheless, Wall Street Shlls are still pricing in 10% earnings growth and slapping a big multiple on top of it.
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"This is a kind of a panic sell-off occurs when the usually large amount of stop losses gets triggered as markets were not expecting such a drawdown in a single trading session," Mustafa Nadeem told FE Online. It was basically widespread to multiple companies, specifically, to NBFC space as there were concerns over credit risk coupled with that plunge in private banks, NBFC, and infrastructure housing finance companies, Nadeem said further. A lot of stop losses that were there in the market at much deeper levels of around 11,200 - 11,150, Mustafa Nadeem said. It was hardly 8-9 minutes of transactions that were much bigger that dragged the Benchmark index down. Though, on the flipside, There was buying seen at lower levels that pushed markets back above 11K level. Sensex was down almost a 1000 point within those few minutes, Mustafa Nadeem said. Technically this will change some technical setup in the medium term. If one would recall the same mode was seen in Early January this year. 

Some recent peer-reviewed research shows that flash crashes are not isolated occurrences, but have occurred quite often. Gao and Mizrach studied US equities over the period of 1993–2011. They show that breakdowns in market quality (such as flash crashes) have occurred in every year they examined and that, apart from the financial crisis, such problems have declined since the introduction of Reg NMS. They also show that 2010, while infamous for the Flash Crash, was not a year with an inordinate number of breakdowns in market quality.[11]
In 2011 high-frequency traders moved away from the stock market as there had been lower volatility and volume. The combined average daily trading volume in the New York Stock Exchange and Nasdaq Stock Market in the first four months of 2011 fell 15% from 2010, to an average of 6.3 billion shares a day. Trading activities declined throughout 2011, with April's daily average of 5.8 billion shares marking the lowest month since May 2008. Sharp movements in stock prices, which were frequent during the period from 2008 to the first half of 2010, were in a decline in the Chicago Board Options Exchange volatility index, the VIX, which fell to its lowest level in April 2011 since July 2007.[83]
With IL&FS getting closer to an absolute liquidity crunch and defaulting on its ICDs and CPs, the RBI has started tightening the vigilance on banks and other financial institutions. For starters, the RBI asked banks to be cautious about buying HFC bonds considering their exposure to IL&FS debt. IL&FS has outstanding debt to the tune of $12.5 billion and the market is rife with news that most of the HFCs have large exposure to IL&FS debt. Of course, the promoters of Indiabulls and DHFL have denied any exposure but the news refuses to go away. The mood was also sourced by a large Indian mutual fund selling DHFL bonds in the market at an above-market yield of almost 11%. That also took its toll on the markets.

Another criticism of certain conventional risk models, is that they regard market crashes as extremely unlikely. Market models suggested 2008 was an incredibly rare event. However, the 1930s crash was fairly similar. Having extremely improbable events just eighty years apart makes very little sense. Of course, we could be massively unlucky, but it is of course far more likely that the model is wrong. And by wrong, we should be clear that we mean inappropriate for the high stress environments of a crash. Most of the time these models hold up just fine, but at the extremes they don't.
Though we don't know what will motivate a future market crash, it's likely to be something that will ultimately be recovered from if history is any guide. The economy and society are very flexible. Industries, and even countries, can rise and fall over time, but if you have a global, well-diversified and lower cost portfolio, then you should be well-positioned. This is an area where diversification helps. If you spread your bets it will likely help. You'll probably find that the next crisis centers on a specific country, part of the globe or investment theme. If you've spread your bets through diversification, then you'll undoubtedly have some assets that fall in value, perhaps alarmingly, but often certain assets can do well during certain crises such as high-quality bonds, more defensive or inexpensive parts of the stock market, or commodities including gold.
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