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.
Despite fears of a repeat of the 1930s Depression, the market rallied immediately after the crash, posting a record one-day gain of 102.27 the very next day and 186.64 points on Thursday October 22. It took only two years for the Dow to recover completely; by September 1989, the market had regained all of the value it had lost in the 1987 crash. The Dow Jones Industrial Average gained six-tenths of a percent during the calendar year 1987.
Japanese asset price bubble 1991 Lasting approximately twenty years, through at least the end of 2011, share and property price bubble bursts and turns into a long deflationary recession. Some of the key economic events during the collapse of the Japanese asset price bubble include the 1997 Asian financial crisis and the Dot-com bubble. In addition, more recent economic events, such as the late-2000s financial crisis and August 2011 stock markets fall have prolonged this period.
In 2005, subprime loans were rampant and as a result, the country over-leveraged itself. Subprime loans, the riskiest loan type given to borrowers with low credit scores, totaled more than $620 billion. Fast forward ten years and subprime originations make up only 5 percent of the mortgage market and add up to $56 billion. Compare that to 2005 when subprime origination made up 20 percent of the market. This represents a 91 percent decline from the height of bad loans that set up the economic crash.

Another risk for stocks in September is coming from the bond market. First the yield curve, or the difference between short-duration and longer-duration rates, is narrowing. That so-called flattening is a warning sign about the economy. If it inverts, meaning short-term rates spike above longer-term rates, it's a recession warning, market pros say.
The Chief Economist of the Commodity Futures Trading Commission and several academic economists published a working paper containing a review and empirical analysis of trade data from the Flash Crash.[60] The authors examined the characteristics and activities of buyers and sellers in the Flash Crash and determined that a large seller, a mutual fund firm, exhausted available fundamental buyers and then triggered a cascade of selling by intermediaries, particularly high-frequency trading firms. Like the SEC/CFTC report described earlier, the authors call this cascade of selling "hot potato trading",[51] as high-frequency firms rapidly acquired and then liquidated positions among themselves at steadily declining prices.

Yes, he’s applying national stats only to local markets. It’s difficult to deny the severe housing shortage in most markets inlcuding Los Angeles, New York, San Jose, San Francisco, Dallas, Seattle, detc. He takes aim at Millennials, whose dreams he doesn’t regard as worthy. There are a lot of people who would like to stifle new housing growth as a way to increse the value of their own property investments. As long as they control politics, housing shortages will continue.
Refraining from tinkering with your portfolio, or even making dramatic changes such as fleeing to cash or switching to different investments altogether, may be challenging at times. That can especially be the case when the market appears to be going haywire and every news story and TV financial show you see seems to suggest that the market is on the verge of Armageddon.

Filia pointed to the increasing frequency of value-at-risk shocks, or swift market corrections, as an indication of fragility for global markets. The report cited as evidence the VIX volatility index spike in February, the Turkish lira's dramatic drop in recent months, and Italy's roller-coaster bond price moves, among other examples, as early warning signals for "system instability of the broader financial network."
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 kingdom affirms its total rejection of any threats and attempts to undermine it, whether by threatening to impose economic sanctions, using political pressures or repeating false accusations,” the government said  in a statement released to Saudi media. “The Kingdom also affirms that if it receives any action, it will respond with greater action.”
I am very frightened. This past June, I allowed a financial advisor to convince me that my portfolio made up of primarily stocks was risky for a retiree. I have been retired since 2005 and had held the same stocks since then. These stocks included 2 Canadian banks, BCE, TransAlta, and Emera. I was receiving dividends o $4,800 per year and all the stocks consistently raised their dividends. The financial advisor put me in2 costly mutual funds which proceeded to lose me $ 1800 within days and also swallowed up up my incoming dividends from the former portfolio. By the time I was down $6,000 I panicked and pulled out of the mutual funds. And! This was in 2017. What I have left and what I thought would carry me through my retirement is now in a money market making very little and I am terrified daily as to reinvesting it.
The internal reasons included innovations with index futures and portfolio insurance. I've seen accounts that maybe roughly half the trading on that day was a small number of institutions with portfolio insurance. Big guys were dumping their stock. Also, the futures market in Chicago was even lower than the stock market, and people tried to arbitrage that. The proper strategy was to buy futures in Chicago and sell in the New York cash market. It made it hard – the portfolio insurance people were also trying to sell their stock at the same time.[14]

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. 
Stock prices began to decline in September and early October 1929, and on October 18 the fall began. Panic set in, and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock, producing a moderate rally on Friday. On Monday, however, the storm broke anew, and the market went into free fall. Black Monday was followed by Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading.
Tulip Mania (in the mid-1630s) is often considered to be the first recorded speculative bubble. Historically, early stock market bubbles and crashes have also their roots in socio-politico-economic activities of the 17th-century Dutch Republic (the birthplace of the world's first formal stock exchange and market),[3][4][5][6][7] the Dutch East India Company (the world's first formally listed public company), and the Dutch West India Company (WIC/GWIC) in particular. As Stringham & Curott (2015) remarked, "Business ventures with multiple shareholders became popular with commenda contracts in medieval Italy (Greif, 2006, p. 286), and Malmendier (2009) provides evidence that shareholder companies date back to ancient Rome. Yet the title of the world's first stock market deservedly goes to that of seventeenth-century Amsterdam, where an active secondary market in company shares emerged. The two major companies were the Dutch East India Company and the Dutch West India Company, founded in 1602 and 1621. Other companies existed, but they were not as large and constituted a small portion of the stock market (Israel [1989] 1991, 109–112; Dehing and 't Hart 1997, 54; de la Vega [1688] 1996, 173)."[8]
The latest round of US/China tariffs had been long flagged and both the US increase (10% on US$200 billion of imports from China, but not yet 25%) and China’s less than proportional retaliation (5-10% on US$60 billion of imports) were less than feared. This, along with reports China is planning a broad cut to its tariffs, was positive and leaves scope for negotiations. More significantly, we are still a long way from a full-blown trade war. After implementation of the latest round, only about 12% of US imports will be subject to increased tariffs and the average tariff increase across all imports will be just 1.6% - implying about a 0.2% boost to inflation and a less than 0.2% hit to growth. In China, the economic impact is likely to be less than 0.5% of GDP. This is all a long way from 1930 when the US levied a 20% tariff hike on all imports and other countries did the same making the depression “great”.
Or it may not be. Think about it. Doomsayers have pointed to any number of reasons in recent years why they believed the market was headed for a downturn: Standard & Poor's downgrading of U.S. Treasury debt in 2011; the growth-slowdown scare in China that sent stock prices down 12% in the summer of 2015; Brexit and the election of Donald Trump, both of which were supposed to be catalysts for a market rout. But none of these warnings panned out.
In the second half of 1982 the number of cartridges grew from 100 in June to more than 400 in December. Experts predicted a glut in 1983, with 10% of games producing 75% of sales.[23] BYTE stated in December that "in 1982 few games broke new ground in either design or format ... If the public really likes an idea, it is milked for all it's worth, and numerous clones of a different color soon crowd the shelves. That is, until the public stops buying or something better comes along. Companies who believe that microcomputer games are the hula hoop of the 1980s only want to play Quick Profit."[28] Bill Kunkel said in January 1983 that companies had "licensed everything that moves, walks, crawls, or tunnels beneath the earth. You have to wonder how tenuous the connection will be between the game and the movie Marathon Man. What are you going to do, present a video game root canal?"[29]
I have been an agent and real estate investor since 2001. I have seen the good times in the early 2000’s, worked through the housing crash, and the good times again. A lot of people think we are due for anther housing market crash because housing prices have increased in many areas of the country. Besides prices, there are many things that drive the housing market. In fact, prices cannot be used as an indicator of what the market will do because they are just a result of many other factors. Supply and demand are what push prices up or down. Supply is affected by foreclosures, homeowners’ willingness to move, new construction, and many other factors. Demand is driven by the economy, lending guidelines, potential homeowners confidence, wages, and much more. I believe the supply and demand affecting today’s’ housing market is much different than what drove the last housing boom. While prices could level out or decrease in some areas, I do not think we are in for a nationwide crash.
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.
Full adoption is around the corner, and it’s conceivable that cash in our society will become obsolete in our lifetime. Protecting your portfolio from a market on a 10-year run will take creative thinking on the part of investors who have been trained to take the easy road by investing in mutual funds, ETFs and listening to brokers who sell product with the highest commissions.  The best idea for investors who have profits in stocks is to start looking at digital currency and work to understand the current flight to quality trends in the markets today.
Seventh, US and global equity markets are frothy. Price-to-earnings ratios in the US are 50% above the historic average, private-equity valuations have become excessive, and government bonds are too expensive, given their low yields and negative term premia. And high-yield credit is also becoming increasingly expensive now that the US corporate-leverage rate has reached historic highs.
A stock market anomaly, the major market indexes dropped by over 9% (including a roughly 7% decline in a roughly 15-minute span at approximately 2:45 p.m., on May 6, 2010)[68][69] before a partial rebound.[8] Temporarily, $1 trillion in market value disappeared.[70] While stock markets do crash, immediate rebounds are unprecedented. The stocks of eight major companies in the S&P 500 fell to one cent per share for a short time, including Accenture, CenterPoint Energy and Exelon; while other stocks, including Sotheby's, Apple Inc. and Hewlett-Packard, increased in value to over $100,000 in price.[7][71][72] Procter & Gamble in particular dropped nearly 37% before rebounding, within minutes, back to near its original levels. The drop in P&G was broadcast live on CNBC at the time, with commentator Jim Cramer commenting:
I have been an agent and real estate investor since 2001. I have seen the good times in the early 2000’s, worked through the housing crash, and the good times again. A lot of people think we are due for anther housing market crash because housing prices have increased in many areas of the country. Besides prices, there are many things that drive the housing market. In fact, prices cannot be used as an indicator of what the market will do because they are just a result of many other factors. Supply and demand are what push prices up or down. Supply is affected by foreclosures, homeowners’ willingness to move, new construction, and many other factors. Demand is driven by the economy, lending guidelines, potential homeowners confidence, wages, and much more. I believe the supply and demand affecting today’s’ housing market is much different than what drove the last housing boom. While prices could level out or decrease in some areas, I do not think we are in for a nationwide crash.
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.
The 1929 crash brought the Roaring Twenties to a halt.[35] As tentatively expressed by economic historian Charles P. Kindleberger, in 1929, there was no lender of last resort effectively present, which, if it had existed and been properly exercised, would have been key in shortening the business slowdown that normally follows financial crises.[32] The crash marked the beginning of widespread and long-lasting consequences for the United States. Historians still debate the question: did the 1929 Crash spark The Great Depression,[36] or did it merely coincide with the bursting of a loose credit-inspired economic bubble? Only 16% of American households were invested in the stock market within the United States during the period leading up to the depression, suggesting that the crash carried somewhat less of a weight in causing the depression.

The trouble began a week ago in the West, where in the early evening a single grain of sand fell on a portion of our pile that was already very steep. This triggered a small avalanche, as a few grains toppled downhill toward the East. Unfortunately, the pile hasn’t been managed properly in the West, and these few grains entered into another region of the pile that was also already steep. Soon more grains toppled and throughout the night the avalanche grew in size; by the next morning, it was well out of control. In retrospect, there is nothing surprising. One fateful grain falling a week ago led to a chain of events that swept catastrophe across the pile and into our own backyard here in the East. Had the Western authorities been more responsible, they could have removed some sand from the initial spot, and then none of this would have happened. It is a tragedy that we can only hope will never be repeated."
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Thank you Dan. Congrats on the new member of the family. Yes, so many people are facing the decision to leave the GTA entirely. Might be agonizing at first, but it might be better for your kids. With the Internet, they won’t miss much. What do you think of Calgary? Buy low and and wait for oil to come back? Isn’t that how big fortunes are made? I don’t know of any such lists but perhaps I should make one:). What’s the first place that comes to mind when you think about moving?
On October 24, many of the world's stock exchanges experienced the worst declines in their history, with drops of around 10% in most indices.[38] In the US, the DJIA fell 3.6%, i.e. not as much as other markets.[39] Instead, both the US dollar and Japanese yen soared against other major currencies, particularly the British pound and Canadian dollar, as world investors sought safe havens. Later that day, the deputy governor of the Bank of England, Charles Bean, suggested that "This is a once in a lifetime crisis, and possibly the largest financial crisis of its kind in human history."[40]

Now the stock market needed to be revived. And hence lots of fresh reforms were started to stabilize the market once again. As already mentioned one supposed reason for the stock market crash of 2000 was the advent of the internet and online trading in such a huge number. To see that just about anyone doesn’t jump into stock trading a rule was formed for these Daytraders. Going by these rules, an individual had to have a minimum of $25000 to their name in any bank account. That would ensure that the person is not insolvent. Other than this very basic rule, lots of other rules were laid which could restrict the previous marketing methods which led to losses.
But China isn’t the only wild card in the global growth deck of cards. Over in the Eurozone, Italy is brazenly threatening to move forward with a budget proposal that would obscenely breach the European Union’s budget guidelines. The bureaucrats in Brussels are threatening fines. But this doesn’t appear to be enough to inhibit the Italian government, which is intent on increasing social welfare programs, adding to pensions and giving workers a tax cut.
Forthcoming state elections are being pitched as Modi’s acid test before the parliamentary elections scheduled for May. As the Opposition seeks to cobble together a coalition against the Modi-led BJP and raise fresh controversies to corner his administration, analysts and political observers are losing their earlier confidence about Modi’s chances of winning a second term. An adverse election result may bring in temporary uncertainty over policy continuity and make investors nervous.
The 1929 crash brought the Roaring Twenties to a halt.[35] As tentatively expressed by economic historian Charles P. Kindleberger, in 1929, there was no lender of last resort effectively present, which, if it had existed and been properly exercised, would have been key in shortening the business slowdown that normally follows financial crises.[32] The crash marked the beginning of widespread and long-lasting consequences for the United States. Historians still debate the question: did the 1929 Crash spark The Great Depression,[36] or did it merely coincide with the bursting of a loose credit-inspired economic bubble? Only 16% of American households were invested in the stock market within the United States during the period leading up to the depression, suggesting that the crash carried somewhat less of a weight in causing the depression.
There is no numerically specific definition of a stock market crash but the term commonly applies to steep double-digit percentage losses in a stock market index over a period of several days. Crashes are often distinguished from bear markets by panic selling and abrupt, dramatic price declines. Bear markets are periods of declining stock market prices that are measured in months or years. Crashes are often associated with bear markets, however, they do not necessarily go hand in hand. The crash of 1987, for example, did not lead to a bear market. Likewise, the Japanese bear market of the 1990s occurred over several years without any notable crashes.
Or it may not be. Think about it. Doomsayers have pointed to any number of reasons in recent years why they believed the market was headed for a downturn: Standard & Poor's downgrading of U.S. Treasury debt in 2011; the growth-slowdown scare in China that sent stock prices down 12% in the summer of 2015; Brexit and the election of Donald Trump, both of which were supposed to be catalysts for a market rout. But none of these warnings panned out.

"I think we're going to work through this continued intersection of domestic and international political risk, with the fact the economy is very good and the earnings projection is very good, and the valuations are creeping up, but they're by no means excessive, with interest rates at this level," said Julian Emanuel, chief equity and derivatives strategist at BTIG. "But our view has been all along that basically you've got to fix the relationship with China in order to really make material further upside progress."

“My sense is that the bottom that we were unable to find, chances are that we have found it. Often things tend to panic and sell of, unless it’s a black swan event My sense is that whatever information is there is not so serious; may be a couple of stocks may remain dicey but overall if there is no systemic risk, what we are doing is we are buying back nifty now; because it’s not like the whole world is coming to an end May be there is a problem; it can be contained; but once the news is out that news is irrelevant. Given that we are now near the 200-DMA, we could now have that sustainable rally. There is no value in worrying about what’s gone wrong. Try to buy because prices tend to factor in most things. My sense is that by the close we should recover some more Buy the good quality NBFCs, such as Bajaj Finance, L&T finance I would be a buyer now that the fall is already over,” investment advisor Ashwini Gujral told CNBC TV18.

What is commercial paper ? Commercial paper is a money - market security issued by large corporations to obtain funds to meet short-term debt obligations and is backed only by an issuing bank or company promise to pay the face amount on maturity date specified on the note . Since it is not backed by collateral , only firm with excellent credit ratings from a recognised credit rating agency will be able to sell their commercial papers at reasonable price .Commercial paper is usually sold at a discount from face value , and generally carries lower interest repayment rates than bonds due to shorter maturities of commercial paper .
I don’t even know how many records I own, but it’s in the thousands. I have records, tapes, CDs, and computer files going all the way back to the 1880s. I even have one recording from 1869. A scientist was studying sound waves and recorded a woman singing “Clare De Lune.” He recorded it as wavy lines on a soot-covered paper. Someone recently scanned it and converted it back into sound. It doesn’t sound very good, but it’s amazing that you could retrieve sound from marks on a sooty piece of paper.
But China isn’t the only wild card in the global growth deck of cards. Over in the Eurozone, Italy is brazenly threatening to move forward with a budget proposal that would obscenely breach the European Union’s budget guidelines. The bureaucrats in Brussels are threatening fines. But this doesn’t appear to be enough to inhibit the Italian government, which is intent on increasing social welfare programs, adding to pensions and giving workers a tax cut.
"Panic is already starting to set in, which is kind of incredible when you actually think about it," said Michael Yoshikami, CEO of Destination Wealth Management. "The S&P is trading where it was in sometime in December. So it's not like we're retracing an entire 12 months of returns here. I think investors are just understandably nervous. It probably is programmed trading kicking in at this point."
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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