Share Market Live: Indian stock markets (Sensex and Nifty) closed lower on Friday facing a knee-jerk reaction in the intraday deals with Sensex closing 280 points lower and Nifty slipping below 11,150. During the day, a market-wide sell-off was seen in stocks with the benchmark Sensex plummetting 1,128 points and Nifty tripping below 10,900. Shares of Yes Bank, collapsed 34% intraday, settled down 29% while DHFL shares ended down 42% after nosediving 60% intraday.
The internet is a wonderful place, and best of all, this knowledge can be found for FREE! The more you know about crisis situations, the more ready you will be to face them. Some sites are friendlier to beginners than others, so if you stumble upon a forum where people seem less than enthusiastic about helping people who are just starting out, don’t let it get you down. Move on and find a site that makes you feel comfortable. Following are some of my favorites, and the link will take you to a good starting point on these sites. In no particular order:
That's bad news because a rise in global prices not only pushes up dollar demand by importers, which impacts the already-widening current account deficit, but also raises inflation concerns back home. Disappointing CAD data - predicted to deteriorate to 2.8 per cent this year from 1.9 per cent of GDP in FY18 - has been haunting Dalal Street for the past few weeks now.
With added regulation, institutional investors will be able to breathe easier and have less anxiety about the uncertainty of the cryptocurrency market. In fact, more investors are seeing cryptocurrencies as a viable asset because of their attractive returns: In December 2017 bitcoin hit a record high of almost $20,000 for one tcoin. Although the price has gone down since then, experts predict that Bitcoin's value could actually go higher than that 2017 figure.
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.
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.
In other words, bear markets are part of investing. You can’t avoid them – but you can make sure a bear market doesn’t wipe you out. Rule number one is to diversify, and periodically rebalance your portfolio. When a correction, stock market crash or bear market comes along, the stocks that fall the most are those that are trading at the highest valuations, those with the most debt, and those with the lowest margins.
When living in Australia between 1995 and 2005, I worked with someone who was 100% convinced that the Australian house price increases were unsustainable, that the market had peaked, and that selling out and getting back in a couple of years was a brilliant idea. Unfortunately, this was around 2002 or 2003 and all that Australian prices did for the next 7 or 8 years was to continue to increase. Last I heard from her, she and her husband had given up any hope of ever again owning their own house.
On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid "22 criminal counts, including fraud and market manipulation"  against Navinder Singh Sarao, a trader. Among the charges included was the use of spoofing algorithms; just prior to the Flash Crash, he placed thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later. These orders amounting to about "$200 million worth of bets that the market would fall" were "replaced or modified 19,000 times" before they were canceled. Spoofing, layering, and front running are now banned.
Jump up ^ Lambert, Richard (July 19, 2008). "Crashes, Bangs & Wallops". Financial Times. Retrieved September 30, 2008. At the turn of the 20th century stock market speculation was restricted to professionals, but the 1920s saw millions of 'ordinary Americans' investing in the New York Stock Exchange. By August 1929, brokers had lent small investors more than two-thirds of the face value of the stocks they were buying on margin – more than $8.5bn was out on loan.
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.
One factor which supports the argument against a property price crash is ongoing strong population growth. Over the year to the March quarter it remained high at 1.6%, which is at the top end of developed countries. As can be seen in the next chart, net overseas migration has become an increasingly important driver of population growth in recent years.
We continue to see the trend in shares remaining up, as global growth remains solid helping drive good earnings growth and monetary policy remains easy. However, the risk of a correction over the next two months still remains significant given the threats around trade, emerging market contagion, ongoing Fed rate hikes, the Mueller inquiry in the US, the US mid-term elections and Italian budget negotiations. Property price weakness and approaching election uncertainty add to the risks around the Australian share market.
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.
As a case in point, I present to you subprime auto loans, or loans given to consumers with less-than-prime credit scores (usually 550 to 619 on the FICO score scale). Having a lower credit score typically gives these folks fewer lending options, which allows lenders that are willing to work with subprime consumers to charge a notably higher interest rate, relative to prime-rated consumers. The problem is these consumers usually have subpar credit scores for a reason, and delinquency rates on these subprime and deep subprime loans are shooting higher.
TREB forecasted another strong year for home sales via the MLS®. Their outlook for the Toronto region was 100,000+ home sales for the third consecutive year. Between 104,500 and 115,500 home sales are expected in 2017, with a point forecast of 110,000. TREB’s districts include Mississauga, Oakville, Vaughan, Newmarket, Aurora, Richmond Hill, Markham Bradford, Scarborough, Brampton, Oshawa and Milton.
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.
If you doubt that, go back to the last major slump, the near 60% decline in the Standard & Poor's 500 index from early October, 2007 to early March, 2009. It's easy to see with the benefit of 20/20 hindsight that it would have been smart to get out of the market the first week of October. But that was hardly obvious in real time. In fact, after dropping by almost 20% from October to early March 2008, stocks rallied for a 12% gain into the middle of May. We know now that this was just a brief respite from what would turn out to be a gut-wrenching bear market. But for all investors knew at the time, that 12% rebound could have signaled the end of the selloff and a resumption of the market's advance.
According to Lee, there are two key factors that will soon bring more institutional interest to the markets. First, it will be the upcoming launch of the digital assets platform Bakkt by the operator of major global exchange New York Stock Exchange (NYSE), Intercontinental Exchange (ICE). Announced in August this year, Bakkt recently confirmed a “target” launch date for Jan. 24, 2019.
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.
The financial crisis ripped through Wall Street 10 years ago, pushing the global economy to the edge of the abyss. One might think those searing experiences would have created a learning opportunity — for managing risk better, understanding structural imbalances in the financial markets, even learning a bit about how our own cognitive processes malfunction.
Nifty and the Sensex saw a sharp correction on Friday, the last trading day of the week as financials rocked the Nifty boat. The Sensex at one point of time was down by over 1000 points and the Nifty had plunged below the 11,000 mark before semblance of sanity returned to the markets. There were 5 principal factors behind the sharp crash in the market on Friday.
Hi Lavanya. Some believe the sky over Toronto will fall in 2018, but with rentals disappearing, it’s safe to say rental income property owners will get their price. Prices won’t go down, and may actually boom if the economy takes off in 2018. Buying a rental income property, living in the upper floor and getting tenants to help with the mortgage is just plain smart. That helps with the housing crisis as well! Good luck with your rental property.
Are you among the millions of Americans who lost thousands in the tech-stock crash of 2000? Do you wish somebody had said something about the dangers of staking your future on overpriced, risky investments? Today's housing market faces a similar crisis, and John Talbott is saying something about it. Find out about the price risks inherent in home ownership in today's economy, and steps you can take to protect yourself and your family from financial hardship, in Talbott's cautionary but convincing The Coming Crash in the Housing Market.