The S&P BSE Sensex surged 368 points on Friday, the recovery after 970-point fall in this week earlier, to a day's high of 37,489.24 tracking the strongness in Indian rupee value against US dollar, lower crude oil prices, government's directive to oil marketers to book future prices of crude oil and positive Asian cues. Shares of ICICI Bank, Reliance Industries, HDFC Bank, ITC, Axis Bank, HDFC and SBI were the biggest positive point contributors to the benchmark index, as these stocks collectively added about 350 points.
A sudden sell-off was seen in most of the NBFCs (Non-Banking Finance Companies) with DHFL plummetting as much as 45%. In the Nifty Financial Services index, 14 of 20 stocks fell into negative territory with Indiabulls Housing Finance losing more than 11% followed by Shriram Transport Finance (down 6%), Edelweiss Financial Services (down 4%), Bajaj Finserv & Bajaj Finance, down 4%, M&M Financial Services down 4%.
Market collapses can really hurt older investors. A stock market collapse can inflict damage across the board, demographically, but the impact on older Americans is especially onerous. Think of a 67-year-old retiree whose assets are largely tied up in the stock market: The value of those assets plummets after a market crash. While a 25-year-old has plenty of time to rebuild portfolio assets, a 67-year-old does not, and doesn't have the needed income any longer to even play "catch up" in the stock market.
Markets can also be stabilized by large entities purchasing massive quantities of stocks, essentially setting an example for individual traders and curbing panic selling. However, these methods are not only unproven, they may not be effective. In one famous example, the Panic of 1907, a 50 percent drop in stocks in New York set off a financial panic that threatened to bring down the financial system. J. P. Morgan, the famous financier and investor, convinced New York bankers to step in and use their personal and institutional capital to shore up markets.
Last week when we were closing on our house- we were selling-, we were told there was a delay earlier in the day. All house sales and money transactions go through the federal reserve. Luckily it came back up, we sold and “pocketed” our gains in the bank. Now what to do with it!!! I am not sure it is safe in the bank, talking $260,000. We want to move to middle, southern Tn. Living in an apartment till my daughter graduates. Any ideas?
The domestic equity markets started on a positive note on Friday following lower crude oil prices, a sharp recovery in Indian rupee value vs US dollar with Yes Bank shares plunging 34%. Yes Bank shares collapsed as much as 34% in the morning deals after India’s fifth-largest private sector lender informed that Rana Kapoor, MD & CEO, Yes Bank may continue as the MD & CEO till 31 January 2019. The benchmark Sensex rallied as much as 368.02 points to a day’s high of 37,489.24 while NSE Nifty recoiled to a day’s top of 11,346.80.
Deanna, yes I did read and write about it actually. It’s horrible for Californians. Brown’s lack of hope, imagination, and entrepreneurialism reflects what’s happened in the US in the last 30 years. If it doesn’t benefit the multinationals, you’ll see neglect, and “water opportunity” is just scorned. Whoever solves California’s water problem will be a Trillionaire many times over!
"They're going to stop putting money into the stock market by that same function, and you're getting into the end of the year," Ader said. Pension funds for the S&P 1500 are now funded at an average of 91 percent for the first time in years. As many funds are legacy funds, strategists expect them to reduce risk because they want to secure their funding levels.
Rather than trying to time the market, which is incredibly hard to do and often counterproductive, it can be helpful to remember that the attractive long-term returns to the stock market include many market crashes. Depending on your measurement criteria, time-period and exactly what index you look at well-diversified portfolio have averaged returns of around 6%-10% a year over time.