Since February 2013, the broad market has three circuit breakers tied to the performance of the S&P 500 index. If it loses 7%, 13%, or 20% of its value compared to the previous days close, trading halts for a period of time. If anything can be considered a stock market crash, it's hitting these circuit breakers.Remember, Black Monday (October 19, 1987) saw the DJIA lose 22.6% in a single day.
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.
And just when you think that this may all be a bunch of bul…h…t. A free energy inventer gets a phone call from a Tv morning show, calling him raising hell on his ass telling him, that he needs to buy up all the free energy electrical devices now, the free energy inventor declines his offer, Host hangs up on him pissed and then calls him back asking him nicely if he could allow him to send him a truck to empty his entire store inventory, the owner declines. Store owner inventor is told by said talk show host, that the elites are getting everything in place to plug the plug. Its obvious that its a planned calapse. The inventor tells us that we will be needing electicity to power up devices, because he was told that the grid will go down, and obvious planned EMP ATTACK on all our major cites, “planned” it seems.
Real estate developers and other investors offer their projects on real estate crowdfunding sites. The platforms have analysts that verify the properties and the developer’s history with only about 5% of submitted deals making it in front of investors. Investors can then pick which deals in which they want to invest, usually as little as $1,000 per investment.
After the experience of the 1929 crash, stock markets around the world instituted measures to suspend trading in the event of rapid declines, claiming that the measures would prevent such panic sales. However, the one-day crash of Black Monday, October 19, 1987, when the Dow Jones Industrial Average fell 22.6%, was worse in percentage terms than any single day of the 1929 crash (although the combined 25% decline of October 28–29, 1929 was larger than October 19, 1987, and remains the worst two-day decline ever).
Many approaches to stock market analysis are statistical. This makes sense. Investing is rife with numbers and data and lots of time periods to slice and dice. In fact, most of the time, the markets appear to helpfully follow basic statistical models. However, it’s not that easy with market crashes. Here, there is surprisingly little data to go on, and many things that we might believe to be true simply aren't.
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.
The Fed underestimated the size and impact of the mortgage-backed securities market. Banks had hired "quant jocks" to create these new securities. They wrote computer programs that sorted packages of mortgages into high-risk and low-risk bundles. The high-risk bundles paid more but were more likely to default. The low-risk bundles were safer, but paid less.
Prior to 1982, the most significant home console was the Atari 2600, along with numerous dedicated single-game consoles such as variants of Pong. The Atari 2600 was launched in 1977, but in its first few years, had modest sales. In 1980, Atari created a licensed version of Space Invaders from Taito, which became known as the killer application for the console; sales of the Atari 2600 quadrupled, and the game was the first title to sell more than a million copies.
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.
The affordability index continues to be stacked against potential home buyers. As housing and rental prices steadily increase, wages continue to stay relatively stagnant. Historically, the average income-to-housing cost ratio in the U.S. has hovered near 30 percent, but in some metro areas, that number is currently closer to 40 and even 50 percent! This strips away the opportunity to save money as a significant portion of a person’s monthly income is going to keeping a roof over their head.
Following the 55%-plunge in DHFL share price, biggest since listing, Kapil Wadhawan, CMD, DHFL said to CNBC TV18 that it is a big surprise and shock to him. We are sitting in a strong liquidity position and there is not default whatsoever, Wadhawan said. All this what we are seeing is a "panic-stricken market reaction" and the total liability position till 31 March 2018 was just Rs 4,800 crore, Wadhawan said further to CNBC TV18. At the same time, there is close to Rs 10,000 crore of liquidity available with us in the system other than collections that we accrue on a monthly basis, Wadhawan said. NPA position is strong and the asset quality is top notch, Wadhawan added.
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.
Job one in the midst of a stock market crash is to be aware of your own exposure to the market. Are you highly leveraged as a margin investor? Is your investment portfolio overly weighted with riskier growth stocks or other more-speculative stocks? Has your personal financial situation changed significantly over the course of a 24-hour market collapse?
Ok but i understand this, banks were selling Mortages for up to 100 times what they were worth even to foreign investors, right/! Ok then they were loaning the money to sell these mortages right with an interest, whereas, the loanee was paying alot of money to buy a house. right and investors were not investing in the stock market they were investing in the housing market. so then where does unemployment really take off here? why did investors suddenly pull there monies out of jobs? and when did the wealthy decide we all needed an overhaul and that disabled americans needed to go without teeth and glasses for 4 years so that the newly displaced homeowners and unemployed americans could jump on the poverty bandwagon. really!
Hi Christine, I can’t offer advice. There is a lot of risk in 2020. Trudeau may botch the trade negotiations and that could could start a Toronto slide. Without the auto sector, Whitby and Oshawa could get hit hard. Good thing is Trudeau could be gone next year and the Americans might listen to a new conservative government. Harper’s already visited the back door at the white house. From here to 2020 could be rough in Canada. Good luck with your sale.
On November 8, 2016, Donald Trump was declared to have been elected as the 45th president of the United States. During the evening and night of the 8th and through the morning of the 9th, global financial markets lost a tremendous amount of value—at one point, US markets had lost a trillion dollars in one of the biggest crashes ever. While the overnight US markets showed big losses, even hitting the circuit breakers, the day of November 9 closed with the three major stock indexes up over a point each. It's too early to tell what this means in the long term.
By September 1983 the Phoenix stated that 2600 cartridges "is no longer a growth industry". Activision, Atari, and Mattel all had experienced programmers, but many of the new companies rushing to join the market did not have the expertise or talent to create quality games. Titles such as Chase the Chuck Wagon (about dogs eating food, funded by the dog food company Purina), Skeet Shoot, and Lost Luggage were examples of games made in the hopes of taking advantage of the video-game boom.
The Housing Bellwether Barometer is an index of homebuilders and mortgage companies. In 2017, it skyrocketed like it did in 2004 and 2005. That's according to its creator, Stack Financial Management, who used it to predict the 2008 financial crisis. Similarly, the SPDR S&P Homebuilders ETF has risen 400 percent since March 2009. It outperformed the S&P 500 rise of 270 percent.
In 1982, a price war began between Commodore and Texas Instruments, and home computers became as inexpensive as video-game consoles; after Commodore cut the retail price of the 64 to $300 in June 1983 some stores began selling it for as little as $199. Dan Gutman, founder in 1982 of Video Games Player magazine, recalled in 1987 that "As the first wave of the personal computer boom started, the video games market began to taper off. People asked themselves, 'Why should I buy a video game system when I can buy a computer that will play games and do so much more?'" The Boston Phoenix stated in September 1983 about the cancellation of the Intellivision III, "Who was going to pay $200-plus for a machine that could only play games?" Commodore explicitly targeted video game players. Spokesman William Shatner asked in VIC-20 commercials "Why buy just a video game from Atari or Intellivision?", stating that "unlike games, it has a real computer keyboard" yet "plays great games too". The company offered competitive upgrades, where rival systems could be traded for a discount toward the purchase of a Commodore 64. Commodore's ownership of chip fabricator MOS Technology allowed manufacture of integrated circuits in-house, so the VIC-20 and C64 sold for much lower prices than competing home computers.
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), 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  1991, 109–112; Dehing and 't Hart 1997, 54; de la Vega  1996, 173)."