This is the one that's probably freshest in the minds of most people reading this, so I'll just give you a quick background. Easy credit and soaring real estate values led to rampant real estate speculation by people who, quite frankly, had no business speculating in real estate. The mortgage loans used, which in many cases were made for even more than the inflated values of the underlying homes, were packaged and sold to institutions as "investment grade" securities.
The panic began again on Black Monday (October 28), with the market closing down 12.8 percent. On Black Tuesday (October 29) more than 16 million shares were traded. The Dow Jones Industrial Average lost another 12 percent and closed at 198—a drop of 183 points in less than two months. Prime securities tumbled like the issues of bogus gold mines. General Electric fell from 396 on September 3 to 210 on October 29. American Telephone and Telegraph dropped 100 points. DuPont fell from a summer high of 217 to 80, United States Steel from 261 to 166, Delaware and Hudson from 224 to 141, and Radio Corporation of America (RCA) common stock from 505 to 26. Political and financial leaders at first affected to treat the matter as a mere spasm in the market, vying with one another in reassuring statements. President Hoover and Treasury Secretary Andrew W. Mellon led the way with optimistic predictions that business was “fundamentally sound” and that a great revival of prosperity was “just around the corner.” Although the Dow Jones Industrial Average nearly reached the 300 mark again in 1930, it sank rapidly in May 1930. Another 20 years would pass before the Dow average regained enough momentum to surpass the 200-point level.
J’ai 42 ans et j’en suis à mon cinquième conseiller financier. J’ai finalement trouver le bon, qui même à 2.5% de frais, me fait quand même « performer » mon portefeuille dans les alentours de 9% à 11% net de frais. A ces rendements, j’ai aucun problème à donner une somme plus importante à mon conseiller. Je n’ai pas le temps et les connaissances pour obtenir ce genre de rendement. Je suis relativement encore jeune(:)) et mon approche est très aggressive donc en retour j’espère une performance minimum.
Vashistha is among the latest in a long string of high-profile prognosticators to work in the financial world: Though the practice has ancient roots, it truly took off during the scientific revolution and has guided certain fiscal luminaries ever since. W.D. Gann, a financial astrologer born in Texas in 1875, became a legendary trader; even J.P. Morgan and Charles Schwab consulted astrologers, notably Evangeline Adams, throughout the early 20th century. "Millionaires don't need astrology—billionaires do," Morgan supposedly quipped.
Vous a-t-il au moins expliqué pourquoi il croit que les fonds indiciels sont une mauvaise idée? Personnellement, le seul point négatif que je vois actuellement aux fonds indiciels est que, si tout le monde investie dans ce type de fond, le marché va devenir stagnant, et à ce moment là ça risque d’être plus avantageux d’investir activement. Mais on est loin de ce scénario. La majorité des planificateurs financiers sont incapables de battre le marché de façon constante sur le long terme, et en tant qu’investisseur, perdre 2,3% de profit pour se payer un planificateur est énorme! On parle de 2,300$ par année sur 100,000$. Sur 20 ans on est rendu à 23,000$, sans compté les intérêts composés perdus. Imaginez sur une porte-feuille de quelques millions…
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."
(en) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1686004 [archive] The Flash Crash: The Impact of High Frequency Trading on an Electronic Market (Le crack éclair ; Les impacts du marché haute fréquence sur un marché électronique ), par Andrei A. Kirilenko (Commodity Futures Trading Commission) Albert S. Kyle (University of Maryland; National Bureau of Economic Research (NBER)) Mehrdad Samadi (Commodity Futures Trading Commission) Tugkan Tuzun (University of Maryland – Robert H. Smith School of Business), 2010-10-01
I recently posted a Guest Blog Entry at the Out Of Your Rut blog. It's called Cash Is a Strategic Asset Class. Juicy Excerpt: Nobody makes much money promoting TIPS or other cash-like investment classes. The “experts” in the investing advice field HATE cash. No commissions. No acceptance into the “Experts” Club. No appeal to the Get Rich Quick impulse lurking within each and every one of us that tempts us into ignoring price when choosing our investment classes. Keith Mercadante,…
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.
Learning about the Stock Market Crash of 1929 and The Great Depression can be hard to understand for a young student. This book really helps the reader understand what really happened and helps them to be well informed of the events that took place over eighty years ago. The book really captures the reader's attention and keeps it throughout the book. Whether your students are or aren't big on learning about history, they will most likely enjoy this book. It is a very interesting topic and a very informative book. I would like to have this book in my classroom library.
I have posted a Guest Blog Entry at the Invest It Wisely site called The Biggest Unknown Risk of Stock Investing. Juicy Excerpt: My strong sense is that most investors have not thought through carefully what it means to stick with stocks for the long run. To try to stick with stocks for the long run and fail to do so is the worst of all possible worlds. The possibility of becoming a failed Buy-and-Hold investor is the biggest unknown risk of stock investing. Juicy Comment #1: I agree…
I recently wrote a Guest Blog Entry for the My Journey to Millions blog. It's called The More You Know About Investing, the Less You Know About Investing. Juicy Excerpt: The experts can learn new things faster than I can. They have all sorts of tools available to them to keep up with developments in the field. They’re driving 90 miles per hour while I’m poking along at 25. Still, I possess an edge. I’m driving at a far slower speed but in the right direction. It makes a…
“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said. “This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business. Schiff is predicting a recession, accompanied by rising consumer prices, that will be “far more painful” than the 2007-2009 Great Recession.
Adverts in the early 1990s had a man called David, portrayed by Dudley Moore, on the hunt for free-range chickens from France and discovering many goods from around the world to purchase for Tesco. Late 2000s adverts included many celebrities and celebrity voice-overs such as The Spice Girls and the voice of actors James Nesbitt and Jane Horrocks.
Sinon, les robot-conseillers, tel que WealthSimple, premettent d’établir un prélévement automatique chaque mois. Moyennant des frais de 0.5%, le robot s’occupe de placer votre argent dans les fonds, de diversifer les placements et de rééquilibrer votre portefeuille. Je n’ai jamais utilisé de telles plateformes, mais certains lecteurs disent en être satisfaits.
You would need to be aware of the strain on your nervous system as Uranus opposes your patterns at 0, 1, 2, 3 in the finance signs. I am sure you could dance in the storm that is coming, and do well – but at a certain point you have to realise that Uranus (the electrifying atmosphere) opposite your natal placements is associated with tremendous stress. Things will be nuts out there, well into early 2019, so you need to make absolutely sure that the price you are paying for that particular line of work, is worth what it will cost you in tension. Uranus oppositions place big demands on us.
It’s all about Uranus in Taurus moving across 0, 1, 2 and 3 degrees and starting in a small but powerful way on 15th May 2018. Your angles at 3 Taurus and 3 Scorpio depend on an accurate birth time, but even if you are not 100% sure, there is still a major line-up in your chart at these very early degrees of the signs, so the revolution will have a direct impact on you in 2018 and 2019. The Moon at 0 Capricorn in your Tenth House of career is a factor. Mercury at 0 Scorpio in your Eighth House of property, stocks, business is a major factor! Venus at 2 Scorpio, also in your Eighth House, is about the financial and personal relationship you have with your wife. Uranus at 0 Libra is much the same thing. Chiron at 0 Aries is about your own title, image and profile. You even have Vesta at 2 Taurus. More than most people, you are going to find your attitude towards money, property, business, possessions and ‘what is valuable’ becomes completely transformed, now through 2019. You may prefer to wait until May and June have passed, if you are in no particular hurry to buy. You have an Aries Sun wife here who also has Uranus, the planet of shock, sudden change and turnaround about to enter her Second House of finance, for the first time in her life. I’m sure you are across cryptocurrency and blockchain technology. Keep updating yourself on what is going on, because it will change day to day. To give you an idea of just how much of a revolution Uranus can bring about, you need to recall what life was like before 2011. That was the year he entered Aries, the sign we associate with self-promotion, our profile, our image, portrait, personal appearance, brand and identity. Our name and face, and our reputation. If you think about how astonishing the rise and rise of social media like Facebook and Twitter has been (social me-me-me-media) then you can see why Uranus in Taurus is going to utterly change the way we bank, spend, save and trade. The technology which has come with the iPhone (the Selfie) and the Selfie Stick – and Instagram filters – has given everyone a chance to push himself/herself and his face/her face and wherever Uranus goes, through a zodiac sign, people get excited. When they get excited, they tend to reach in their pocket. So, you can see why with Uranus at 0 Taurus opposing your natal Mercury at 0 Scorpio, you may prefer to adopt a wait-and-see policy across May and June, just to get an inkling of what is about to sweep the world, over the next six or seven years. As Mercury is so close to Venus in your chart, and Uranus in Libra (marriage) too – I have to say, 2018 and 2019 is all about your wife and her company sale,and those proceeds. In fact, never mind the actual currency and business trends you are about to see rock America – you need to focus on the personal relationship with her, because there is a fundamental shift going on this year and next year too. This brings us back to the idea of putting a price tag on the things that money cannot buy. The emotional, spiritual, intensely personal aspects of what you two share. You have some crossroads decisions ahead.
Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert Shiller (Figure 10.1, source). The horizontal axis shows the real price-earnings ratio of the S&P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows the geometric average real annual return on investing in the S&P Composite Stock Price Index, reinvesting dividends, and selling twenty years later. Data from different twenty-year periods is color-coded as shown in the key. See also ten-year returns. Shiller states that this plot "confirms that long-term investors—investors who commit their money to an investment for ten full years—did do well when prices were low relative to earnings at the beginning of the ten years. Long-term investors would be well advised, individually, to lower their exposure to the stock market when it is high, as it has been recently, and get into the market when it is low."
December 14, 2008 Denise Siegel1929 Stock Market Crash and now, 30s depression and now, 70s recession, answering readers, answering readers questions, criminal activity and the stock market, economic future, economic prediction, future stock market crash, global world crisis, Obama and the new economy, Pluto, precognition, stock market, Stock Market Crash, the dow1 Comment
Mother Earth is now in greatest distress because of the exploding population explosion which is greatly ignored by the governments. As you are aware we all have our free wills. Some countries like Bangladesh, Pakistan, Palestine have all run out of space and many countries are encroaching on valuable farm lands. Added to this is enchroaching and expanding deserts and valuable coastal lands overtaken by encroaching sea waters because of global warming. Added to this is massive droughts and floods. You, Dear Sir, spend a lot of time in India and are very familiar with Karma, nemisis, faith, yogamaya, samskara – Every action has an equal reaction. Now is Payback time. As Ex- President Senior Bush said – ” you ( earth people) trash the earth, the earth will trash you back”. You all are going to be trashed severally. This is a grim warning.
Je suis d’accord avec toi que ce type de société semble devenir de plus en plus populaire. Il y a peu de temps, j’ai vu sur leur compte Twitter que Justin Trudeau était même venu visiter leurs bureaux. Par contre, quand j’ai parlé de Wealthsimple à ma banque (je suis chez Desjardins), il m’ont dit qu’il n’avait jamais entendu parler de cette compagnie… (si c’est vrai, je m’inquiète un peu pour eux car il me semble qu’une banque se doit de connaître un minimum la concurrence).
Malgré son nom imagé, le conseiller robot n’est pas une version robotisée du planificateur financier (mais presque). En fait, il s’agit d’un algorithme sophistiqué qui automatise la gestion et le rééquilibrage de vos placements. Ainsi, selon votre profil d’investisseur, le robot détermine où placer votre argent et réajuste la répartition des actifs lorsque nécessaire. Vous n’avez rien à faire!
No, timing is everything actually Beffett’s money was made in 1970s He got out of the Market completely in 1968 and closed his partnership because of high valuations not supported by anything – same thing in 2000, 2007,. Patience means nothing if you are 70 and not working. Sure, when you are young dollar cost works well, but we are not all the same age and cycle. Someday cash is king. COT.COM crash was like the Gold crash of 1976 everyone wanted in – that’s when to fear, when everyone wants out that’s when to buy. Schiller is right.
The crash on October 19, 1987, a date that is also known as Black Monday, was the climactic culmination of a market decline that had begun five days before on October 14. The DJIA fell 3.81 percent on October 14, followed by another 4.60 percent drop on Friday, October 16. On Black Monday, the Dow Jones Industrials Average plummeted 508 points, losing 22.6% of its value in one day. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. The NASDAQ Composite lost only 11.3%, not because of restraint on the part of sellers, but because the NASDAQ market system failed. Deluged with sell orders, many stocks on the NYSE faced trading halts and delays. Of the 2,257 NYSE-listed stocks, there were 195 trading delays and halts during the day. The NASDAQ market fared much worse. Because of its reliance on a "market making" system that allowed market makers to withdraw from trading, liquidity in NASDAQ stocks dried up. Trading in many stocks encountered a pathological condition where the bid price for a stock exceeded the ask price. These "locked" conditions severely curtailed trading. On October 19, trading in Microsoft shares on the NASDAQ lasted a total of 54 minutes.
Just curious, since you are closer to the “action” out there. Do you or anybody know if there is any type of timetable or budget for the great investigator [Mueller]? Or do he and his posse have a blank check with this whole White House investigation? I would be interested in what this little crusade has cost us so far, since he has summoned quite a group to leave no stone, rock, or post unturned.
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I recently posted a Guest Blog Entry at the MoneyCrush blog. It is called On Investing: Risk Could Be Almost Entirely Optional. Juicy Excerpt: Many top-name people acknowledge the problem. The trouble is figuring out what to do about it. If people come out today and acknowledge that the retirement studies used by millions got the numbers wildly wrong, the millions of people who relied on those numbers are obviously going to be very upset. The other side of the story is that people will be…
When our Schumpeterian trader from Chicago muses about the relationship between Earth and other celestial bodies, he implies some electromagnetic or gravitational pull. Something sciencey. Weingarten’s financial astrology is more ethereal. More … pagan. The reason Saturn has to deal with limitation or reality is that Saturn is the Roman name of the Greek titan Cronus, aka Father Time. Saturn stands for the passage of time. It is melancholic; it’s why we have the word saturnine. It’s why Weingarten called b.s. on Bitcoin.
Thanks Jessica!! My stepdad’s birthdate is September 3, 1931. And yes, I hear you regarding the seriousness of the epoch we are moving into and my chart’s potentially unpredictable relationship to that. I am wondering if it would be wisest to wait the next two years out and focus on my creativity and on earning rather than investing – but I’m also aware there will be amazing financial opportunities for those who are astute, rural property not far from the sea being chief among them. I dream of having a beautiful but affordable place for my son (September 7, 1999) and my extended family and friends to visit whenever they wish and for me to teach and create in. Love and blessings :)
On October 24, I sent my article “Buy-and-Hold Is Dangerous” to the Quillette.com site for possible publication there. The article is an 11,300-word summary of my experiences of the past 16 years trying to get the word out about the errors in the Buy-and-Hold retirement studies and about the dangers of the Buy-and-Hold Model in general, focusing on the public policy aspects of the question (rather than on the investment advice side of the story). Set forth below is the text of my e-mail to the editors at Quillette.com: Quillette Editors: The primary purpose of this article (“Buy-and-Hold Is Dangerous”) is not to make the case against Buy-and-Hold as an investment strategy. It is to point out the harm that the relentless promotion of this long discredited model for understanding how stock investing works is doing from a public policy standpoint. For example, Robert Shiller explains in his book “Irrational Exuberance” that it was the bull market of the late 1990s, which was brought on by the widespread price indifference encouraged by Buy-and-Hold, that served as the primary cause of the economic crisis of 2008. And prices are high enough today to justify concerns that we will be seeing a repeat of that crisis in not too long a time. Thanks for giving the article a look. The article explains who I am and how I came to be the world’s leading expert on the 37-year cover-up of the dangers of the Buy-and-Hold Model. / Rob Bennett / I received a response later the same day saying: / Hi Rob, / Thank you for thinking of us but we’ll pass on this. We’re already over-capacity as it is for the time being so unable to take this on board. / Best of luck pitching this elsewhere. / Kind regards, / Jamie Related PostsValuation-Informed Indexing #260 : Shiller’s Ideas Should Be Treated as Mainstream IdeasValuation-Informed Indexing #269: Eight Questions That Should Be Keeping Buy-and-Holders Up at NightValuation-Informed Indexing #265: P/E10 Permits Us to Quantify Investor EmotionBarton Swaim to Rob: “This Is Terrific. Thank You for Writing. Very Grateful That You Read My Piece [on the Expertocracy] and Took the Time to Explain What It Looks Like in Your Field.”Rob’s E-Mail to Danielle Citron, A Law Professor Who Wrote a New York Times Article on Revenge PornMy E-Mail to Newsweek Columnist Robert Samuelson
I wrote a Guest Blog Entry re the new Returns-Sequence Reality Checker calculator that appears today at the Consumerism Commentary blog. It's called The Good Side of Stocks' Lost Decade. Juicy Excerpt: The reason why I call the calculator “The Reality Checker” is that it throws doubt on one of our most fundamental beliefs about stock investing — that positive returns are good and that negative returns are bad. It’s not hard to understand why most of us think that. If your stock…
Even better than not selling stocks during a recession is to actually go on the offense. In bull markets, investors can occasionally find reasonably priced, wonderful businesses. But they can rarely find wonderful businesses trading at a significant discount to their fair value. Stock market crashes are the rare times when high-quality businesses can be found in the clearance aisle. Go shopping!
I've posted a Guest Blog Entry at the Hope to Prosper site called How Has Buy-and-Hold Survived So Long? Juicy Excerpt: There are now thousands of books promoting Buy-and-Hold. There are hundreds of calculators promoting Buy-and-Hold. There are thousands of experts who made their reputations promoting Buy-and-Hold. In short, there are lots of powerful people and institutions with a strong financial interest in promoting the failed strategy rather than its…
“The stock market moves in a seasonal cycle that is derived from a calendar that is computed from the orbits of the Earth and the sun,” said Bill Sarubbi (aka Bill Meridian), who uses astrology in his market forecasts as president of predictive analytics-focused Cycles Research Investments, LLC. (His predictions go out to 8,000 subscribers at a cost of $215 per year.) “By adding other relevant cycles such as that of the planet Mars, one will increase their odds of success in market predictions.”
With a Real Wealth Strategist subscription Matt will be your guide to making the kinds of profits many investors only dream about. You’ll get access to his education and experience: Over 20 years in the natural resource industry, expertise in mining, industry and agriculture, and the chance to travel with him as he visits mines, oil projects and company headquarters, in search of the perfect investment idea. Real Wealth Strategist’s portfolio focuses on all natural resources. Essentially, if there’s a way to maximize profits, he’s going to find it and recommend it.
Many people have predicted World War 3 taking place soon with Putin’s official announcement in late February 2018 of Russia’s invincible nuclear capability where the nuclear missiles are impossible to be detected by US when launched https://youtu.be/gSuv0CzSnts Many devoted Christians also have similar dreams from God warning of Russia and China invading US and Russian nuclear missiles bombing New York City such as https://unitedstatesprophecy.com/russia-will-attack-and-invade-america/
“The shift from active to passive asset management, and specifically the decline of active value investors, reduces the ability of the market to prevent and recover from large drawdowns,” Joyce Chang and Jan Loeys wrote in the Monday note. Actively managed accounts make up only about one-third of equity assets under management, with active single-name trading responsible for just 10 per cent or so of trading volume, JPMorgan estimates.
But if U.S. GDP growth were to falter -- let’s say dip to 1% or lower on an annual basis -- then it would be really difficult to support existing valuations for companies in the technology and biotech arenas. And since tech and biotech have played such a critical role over the past nine-plus years in pushing stocks higher, they could easily be responsible for dragging the stock market into a correction.