During the mid- to late 1920s, the stock market in the United States underwent rapid expansion. It continued for the first six months following President Herbert Hoover’s inauguration in January 1929. The prices of stocks soared to fantastic heights in the great “Hoover bull market,” and the public, from banking and industrial magnates to chauffeurs and cooks, rushed to brokers to invest their surplus or their savings in securities, which they could sell at a profit. Billions of dollars were drawn from the banks into Wall Street for brokers’ loans to carry margin accounts. The spectacles of the South Sea Bubble and the Mississippi Bubble had returned. People sold their Liberty Bonds and mortgaged their homes to pour their cash into the stock market. In the midsummer of 1929 some 300 million shares of stock were being carried on margin, pushing the Dow Jones Industrial Average to a peak of 381 points in September. Any warnings of the precarious foundations of this financial house of cards went unheeded.
Buy when others sell. Historically, stocks rebound much higher than their price levels just before a bear market. This was the case in 1987, 1990, 2001, and in 2008 (just after the Great Recession began) after severe market collapses in those years. By contributing regularly to your 401k plan, your IRA plan and your stock and mutual fund investments, you're "buying at the dip," as Wall Street traders like to say. That means you're buying when prices are low, thus giving you significantly more bang for your investment buck. Remember, stocks become overpriced as bull markets mature. They become cheap in bear markets.
Yes Bank was sharply down nearly 30% on Friday after being as much as 34% down at one point of time. Volumes were sharply higher on Friday indicating some concerted institutional selling on the stock. The stock was downgraded by a slew of brokers after the RBI refused to allow Rana Kapoor to continue as the CEO of the bank after January 2018. The RBI has been quite choosy about permitting CEOs to continue and even in the case of Axis Bank the RBI had actually compelled Shikha Sharma to move on after December. This had a spill-off effect across the banking stocks as the BSE Bank index corrected as much as 3.5% in a single day.
So aim to build a war chest for a future market meltdown by accumulating cash. It's probably best not to overdo it, though, because the market may not crash for another few years, in which time all the cash you've amassed will not have been growing for you in stocks. You might just accumulate enough cash to establish meaningful positions in a few stocks. In general, it can be good to have no more than 10% of your overall net worth in cash for investments.
Its pretty obvious she's completely failed. She may as well have said she never wrote the current Brexit deal, Barnier did or Merkel did. In more enlightened times her head would be on a spike by now, down by the Thames. But what do we expect from just the latest traitor to Sovereignty on the list, that includes: Heath, Major, Brown and the rest . . We need a new broom to sweep all this rubbish away, once and for all . .
Harris said the markets are also watching the progress of the U.K.'s pending exit from the European Union next March. On Sept. 30, the U.K. conservative party conference begins, and its tone could influence the course of Brexit talks. He said it would take a big shock from Europe to affect the U.S. Failure by the U.K. to reach a Brexit deal could be such an event.
At the time of the Flash Crash, in May 2010, high-frequency traders were taking advantage of unintended consequences of the consolidation of the U.S. financial regulations into Regulation NMS, designed to modernize and strengthen the United States National Market System for equity securities.:641 The Reg NMS, promulgated and described by the United States Securities and Exchange Commission, was intended to assure that investors received the best price executions for their orders by encouraging competition in the marketplace, created attractive new opportunities for high-frequency-traders. Activities such as spoofing, layering and front-running were banned by 2015. This rule was designed to give investors the best possible price when dealing in stocks, even if that price was not on the exchange that received the order.:171
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”.
AE good tip, and believe me I do Trek where the the Grizzlies Roam. I always carry a big sidearm and considered myself to be rather macho, but after watching serveral videos on bear attacks, I will still carry my gun but Bear Pepper Spray will be my first defense. Bear Spray may also be the best way to go when facing 4 federal agents at your front door, probably more affective and if and when they get you, there will be no murder charge against you. And BTW I just killed a big black bear with my bow. Trekker Out.
I live in a housing bubble market with everyone attempting to buy at sky high prices. I bought 4.5 years ago, and am looking at selling for over a 100% gain in that amount of time. Yes attempting to sit on the sidelines waiting for the market to change may not seem the best, but rather than being intent on jumping back into the poker game because you like the action, take your earnings off the table. Markets can remain irrational for exuberant amounts of time, but you have to weigh it out. At the moment a 30% retrace would mean I lose $140,000 worth of equity currently available. I’ll rather that liquidity in the bank any day over paying the mortgage of an asset still owned by a lender, which to me is a liability.
On September 16, 2008, failures of massive financial institutions in the United States, due primarily to exposure to packaged subprime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis. This resulted in a number of bank failures in Europe and sharp reductions in the value of stocks and commodities worldwide. The failure of banks in Iceland resulted in a devaluation of the Icelandic króna and threatened the government with bankruptcy. Iceland obtained an emergency loan from the International Monetary Fund in November. In the United States, 15 banks failed in 2008, while several others were rescued through government intervention or acquisitions by other banks. On October 11, 2008, the head of the International Monetary Fund (IMF) warned that the world financial system was teetering on the "brink of systemic meltdown".
Having said that, it does seem like Buffett himself is paying attention and agrees that the market is generally expensive. After all, the lack of attractive investment opportunities has resulted in Berkshire Hathaway accumulating nearly $110 billion of cash and equivalents on its balance sheet. Plus, Buffett has specifically cited valuation when discussing the absence of major acquisitions lately.
By the end of the weekend of November 11, the index stood at 228, a cumulative drop of 40% from the September high. The markets rallied in succeeding months, but it was a temporary recovery that led unsuspecting investors into further losses. The Dow Jones Industrial Average lost 89% of its value before finally bottoming out in July 1932. The crash was followed by the Great Depression, the worst economic crisis of modern times, which plagued the stock market and Wall Street throughout the 1930s.
On Black Monday, the Dow Jones Industrial Average fell 38.33 points to 260, a drop of 12.8%. The deluge of selling overwhelmed the ticker tape system that normally gave investors the current prices of their shares. Telephone lines and telegraphs were clogged and were unable to cope. This information vacuum only led to more fear and panic. The technology of the New Era, previously much celebrated by investors, now served to deepen their suffering.
Watched CNN and CNBC for first time in years today. Then went over to Fox for a bit.. Very little info on world market crash today.. It is stunning how information is being skewed to the masses. All they were really talking about was Trump and HilLary, and oh yes those brave American terrorist beaters. The depth of denial in our country is breathtaking. I feel like I am living in an alternate reality, the world is crashing around our ears and very few seem to give a rats ass, unbelievable. Went and had two of my rifles bore sighted , zeroing them agian at range tomorrow. Bought 500.00 of emergency food, and ordered a good solar watch I have been looking at.Picking up extra 1000 rounds of Ar, and 250 rounds for my 308. Feel like I have very little time to finish preps. I also ordered a cast iron wood stove and am picking up 4 cords of wood this weekend. I hate feeling this paranoid but damn how can one take a sane look at our world and not be. God bless and protect you all in the coming weeks.
“My view is that the markets are extremely overvalued, and can fall even 2,000 points from here. (Sensex). The Nifty can correct by about 1,000 points. Nothing has changed fundamentally, I mean we have the same macro-economic situation, etc, but when a sell-off happens, nobody can predict. Financials, especially NBFCs are overvalued,” Rajat Sharma, founder, Sana Securities told FE Online.
Recently, Netherlands-based “Big Four” auditor KPMG has released another bullish stance on crypto, claiming that the industry needs institutional investors’ participation in order to “realize its potential.” Earlier last week, CoinShares CSO Meltem Demirors claimed that the the recent collapse of the markets is caused by institutions“taking money off the table” due to Bitcoin Cash’s (BCH) hard fork.
I agree with the first posting. Interesting synopsis of the real estate market but your support of trump is really misplaced. He is a liar and cannot be trusted in ANYTHING he does. The 90s under Clinton and the GOP congress was the best economic expansion in our country’s history, period. Opportunity everywhere. Taxes were high, but we were more balanced. The Obama years were more about the Tea Party than anything. And guess what. Unless Trump solves this dilemma, he’s done and we’re done too. The FED is the only thing that has kept us from roiling over the edge for the last 8+ years. And I’m guessing under Trump after a few years of super heating the economy again, like under Way, we’ll be looking at another speculative crash. Why? Because the GOP has sold us down the river. NO? Everything in our lives now reflects business and speculative interests? Who benefits? Gee I don’t know. Maybe rich people that can speculate on everything that touches us. Time to leave. You stay in the game and keep preaching growth instead of stability. Let’s see how it all works out.
Jump up ^ Coleco Presents The Adam Computer System. May 3, 2016 [1983-09-28]. Event occurs at 44:30. Archived from the original on January 3, 2017. We're doing that with five new television commercials, which have just been completed, and which will be shown in conjunction with the Adam launch date. These commercials are each directed to our target audience, which is composed of our friendly neighborhood children, boys age 8 to 16 and their fathers. We believe those are the two groups that really fuel computer purchases, [boos] and we've directed right at 'em [more boos] - oh, sorry, sorry, sorry, sorry. Women, we've a commercial for you, trust me, but the key point is that our research, which is consumer research, directed that thought [inaudible] from the research, and we've directed our commercials at that target user group.
Impact of high frequency traders: Regulators found that high frequency traders exacerbated price declines. Regulators determined that high frequency traders sold aggressively to eliminate their positions and withdrew from the markets in the face of uncertainty. A July 2011 report by the International Organization of Securities Commissions (IOSCO), an international body of securities regulators, concluded that while "algorithms and HFT technology have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor". Other theories postulate that the actions of high frequency traders (HFTs) were the underlying cause of the flash crash. One hypothesis, based on the analysis of bid-ask data by Nanex, LLC, is that HFTs send non-executable orders (orders that are outside the bid-ask spread) to exchanges in batches. Though the purpose of these orders is unknown, some experts speculate that their purpose is to increase noise, clog exchanges, and outwit competitors. However, other experts believe that deliberate market manipulation is unlikely because there is no practical way in which the HFTs can profit from these orders, and it is more likely that these orders are designed to test latency times and to detect early price trends. Whatever the reasons behind the possible existence of these orders, this theory postulates that they exacerbated the crash by overloading the exchanges on May 6. On September 3, 2010, the regulators probing the crash concluded: "that quote-stuffing—placing and then almost immediately cancelling large numbers of rapid-fire orders to buy or sell stocks—was not a 'major factor' in the turmoil". Some have put forth the theory that high-frequency trading was actually a major factor in minimizing and reversing the flash crash.
Currently, the U.S. stock market is in the midst of one of the longest bull markets in its history. Since bottoming out in March 2009, the broad-based S&P 500 (INDEX: ^GSPC), led by a strong rally in technology stocks and other growth industries, has surged by more than 325%! Mind you, the stock market has historically returned 7% a year, inclusive of dividend reinvestment and adjusted for inflation. So, to say that things are going well right now would be an understatement.
Very interesting comment Mark. Thanks for the insight. I do have doubts about President Trump. He’s never stated that he cares about small business. He didn’t state that when he talks about jobs leaving the US, he’s really talking about decisions by greedy multi-national corporate execs and how they stick it to the government. Your admiration of the Clintons I don’t know about. They’ve all been riding the national debt gravy train at ($20 Trillion now). But really, can you just keep living off of credit cards forever? Trump’s trying to turn things around. Even if morally, he’s at the same level as Bill Clinton, we can give him a try at bringing the good jobs back. You do realize China and India are educating and churning out high tech engineers by the boatload, using your money? Are US companies basically competing with overseas companies funded with American money? That’s not FREE TRADE, that’s tax evasion and outsourcing for cheap labor. Trump’s foolish obsession with Mexico and North Korea, might be a sign his mind isn’t 100%, but without Trump, you’re back on the debt gravy train.
The Dow was already down 20 percent from its September 3 high, according to Yahoo Finance DJIA Historical Prices. That signaled a bear market. In late September, investors had been worried about massive declines in the British stock market. Investors in Clarence Hatry's company lost billions when they discovered he used fraudulent collateral to buy United Steel. A few days later, Great Britain's Chancellor of the Exchequer, Philip Snowden, described America's stock market as "a perfect orgy of speculation." The next day, U.S. newspapers agreed.
Adding to the problem is that much of the Chinese private debt is pledged with collateral from the stock market, which has been in free-fall this year. According to Reuters, more than 637 billion shares valued at $4.44 trillion yuan ($639.86 billion) were pledged for loans as of Oct. 12. As the air continues to pour out of the stock market, it will put additional pressure on the debt market.
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You are obviously a banker of some sort. The bankers and the bank owners are fucking greedy bastards. PERIOD. Look at the situation. They make billions but cant provide benefits. It is the obligation of owners and investors to provide for workers. Its is supposed to work that way. But they and you KEEP it all and give the people swill. You al suck and have been compared to serial killers on a psychological level.. Stop defending the indefensible! you bought the bailout in 08 and the took bonuses for causing it. You put people and kids in th street then went sailing. So fuck you and your bastard cronies!!!!!
For example, the United States has a set of thresholds in place to guard against crashes. If the Dow Jones Industrial Average (DJIA) falls 2,400 points (threshold 2) before 1:00 p.m., the market will be frozen for an hour. If it falls below 3,600 points (threshold 3), the market closes for the day. Other countries have similar measures in place. The problem with this method today is that if one stock exchange closes, shares can often still be bought or sold in other exchanges, which can cause the preventative measures to backfire.
India as we know is importer of Crude oil(Petrol, diesel). One of biggest country that supply crude to India is Iran . United States had put a lot of sanctions on Iran owing which India is facing difficulty in procuring crude from Iran. Since the demand of crude is intact and supply has been reduced globally , the price of brent crude has sky rocketed touching 80$ per barrel.
Shares of tech companies, including the so-called FAANG stocks – Facebook, Apple, Amazon, Netflix and Google-parent Alphabet – have been market darlings for years. So when a sell-off gains steam, the stocks with the biggest gains are among the ones that investors sell first to lock in profits. Tech stocks have also been caught in the trade fight with China, as Trump's tough stance on Beijing is causing disruptions in their supply chain. Technology companies such as Facebook, Twitter and Alphabet are also facing intense regulatory scrutiny from the U.S. government.
Tech stocks, this year’s best-performing industry, will be in the spotlight, as executives from Twitter, Facebook and Google’s parent Alphabet begin testimony to Congress on Wednesday while Trump blasts about antitrust. Friday’s monthly payrolls data precedes a policy meeting by Federal Reserve later in the month, when the central bank is expected to raise interest rates for an eighth time since 2015.
The Dow Jones is flying, but the risks of a crash are many and ready to materialize. Donald Trump was elected almost a year ago, at the time of writing. The markets were supposed to have crashed. They did for a few hours. Despite the many protests, marches, and witch hunts that the 2016 presidential election has caused, the Dow has gained about 30% since November 8, 2016.
Indian stock markets witnessed a steep and sudden sell-off in the afternoon deals on Friday. Rajat Sharma of Sana Securities told FE Online that stock markets are "extremely overvalued" and Sensex can fall even 2,000 points from here while NSE Nifty can correct by about 1,000 points. "Nothing has changed fundamentally, I mean we have the same macro-economic situation, etc, but when a sell-off happens, nobody can predict, Rajat Sharma said further.
Take no action at all. If you have a good portfolio plan in place, the smartest move to make in a tough market environment is to stay the course. The worst thing you can do is to jump out of the stock market. That's because the chances are you'll still be on the sidelines when the market picks up again. That's called "market timing" and even professional traders usually can't figure out when stocks will rise again. By remaining in the market you'll be assured of being there when the market rebounds -- as it always does, historically.
Admittedly, getting to the right mix can be tricky. The percentage of stocks you're perfectly comfortable with when the market is going gangbusters may leave you frightened and anxious when stock prices plummet. One way to arrive at a portfolio mix that jibes with your risk tolerance and financial needs is to go to a tool like Vanguard's risk tolerance-asset allocation questionnaire. The tool suggests a percentage of stocks and bonds that should make sense for you. It will also show you how various mixes of stocks and bonds have fared over the long term and in up and down markets.
The housing market peaked somewhere in 2006. We were beginning to see some of the early signs of trouble when some types of subprime loans started to go into default. There wasn’t worry at that time since never in history have prices for housing market gone down nationally. Once the credit markets froze in summer 2007, things began to deteriorate rapidly. Subprime credit stopped completely and interest rates for credit for other types of borrowing including corporate loans as well as consumer loans rose dramatically.
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?
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.
The month began with more bad news. The Labor Department reported that the economy had lost a staggering 240,000 jobs in October. The AIG bailout grew to $150 billion. Treasury announced it was using part of the $700 billion bailouts to buy preferred stocks in the nations' banks. The Big Three automakers asked for a federal bailout. By November 20, 2008, the Dow had plummeted to 7,552.29, a new low. But the stock market crash of 2008 was not over yet.
Market crashes are far more common in our imagination than in reality. This is because they are vivid and scary events. Given our evolution, we are wired to worry about these sorts of vivid events. While, this may have been useful in helping us avoid getting eaten by tigers, it's less useful for rational, disciplined stock market investing. By thinking this topic through now, hopefully you're a little better prepared when the next crash hits.