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.”
Finally, as you think about your allocation there are a few things to consider. Generally, lower risk bonds hold up better during stressed markets. U.S. Treasury bonds have historically risen in value during extreme market stress. It's not guaranteed but may be helpful to portfolios if history is any guide. Also, depending on the nature of the crisis diversifying assets such as commodities, including gold, or real estate can be helpful. Again, these won't work every time, for example in 2008-9 real estate was the epicenter of the crisis but spreading your bets can help. Finally, within stocks diversification is useful. We've seen high valuations in U.S. blue chips in the 1970s, U.S. tech in the 1990s and Japanese investments in the 1980s, each was met with nasty price declines on the other side. Rather than trying to predict these events, it can be best to spread your bets across sectors, geographies and other categories, so that if the next crash does focus on one specific area, then you won't be wiped out.
Take your money out of the bank ASAP.  If you still keep your money in the bank, go there and remove as much as you can while leaving in enough to pay your bills. Although it wasn’t a market collapse in Greece recently, the banks did close and limit ATM withdrawals.  People went for quite some time without being able to access their money, but were able to have a sense of normalcy by transferring money online to pay bills or using their debit cards to make purchases.  Get your cash out. You don’t want to be at the mercy of the banks.

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.
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.

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.”


China’s economy has been on a downward trajectory in the past few months, with auto and retail sales on the decline. Fixed-asset investment rose a mere 5.3% in the January-August period from a year earlier. It was the most lackluster growth rate since 1992. This was mostly a planned slowdown; an edict from the government that realized its economy was beginning to resemble a Ponzi scheme.
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.)
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.
"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. 
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. 
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.
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. 
Greed and only greed caused the crashes. 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. But GAMBLERS saw the same things as unconcerned individuals see today. Morality be dammed and me first.
I really don't understand this... how come every man and his dog knew exactly what the French had in store for us once May's abysmal scam is signed off, never mind what the rest of the EU have planned.Talk about laying down and allowing them to walk all over us... this is more like handing them the keys to a steamroller and begging them to squash us because we enjoy it.
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.
It’s a sorry reflection of the times we live in when we celebrate the rising cost of providing shelter for your family. The social cost of both parents having to work in order to afford a home – kids in daycare, less disposable income to put to into their development… this is the situation for so many families now. This inconvenient truth is happily ignored by those who profit in the current market, and while money it to be made it is unlikely to change.
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).
With that in mind, the fact is that the Buffett Indicator is at its highest point in history -- meaning that stocks have never been valued as high as they are now in terms of market cap to GDP. While this indicator doesn't necessarily mean that the tides will turn anytime in the near future, it may be a smart idea to start thinking a little defensively.
I really don't understand this... how come every man and his dog knew exactly what the French had in store for us once May's abysmal scam is signed off, never mind what the rest of the EU have planned.Talk about laying down and allowing them to walk all over us... this is more like handing them the keys to a steamroller and begging them to squash us because we enjoy it.
so that being said will this cause CA to go down the dumps along with housing prices?? I have already witness many middle to higher class citizens leave in large amounts in the last 3 years. and in the last 8 years a huge increase in homeless rate.. I am also concerned with the decision of the 9th circuit court that they have a constitutional right to sleep on sidewalks and parks which will further bring the state down.

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.


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. 
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