Even as the recent global sell-off has witnessed in February-March has spooked certain investors, Microsoft’s Bill Gates says that a 2008 like financial crisis is a certainty. “It is hard to say when but this is a certainty. Fortunately we got through that one reasonably well,” Bill Gates wrote in response to question posed by a reader in an AMA (Ask Me Anything) session on Reddit in February-18. “Do you think in the near future, we will have another financial crisis similar to the one in 2008?” the user had asked. Interestingly, Bill Gates also mentions about Oracle of Omaha Warren Buffett of having spoken about it. “Warren has talked about this and he understands this area far better than I do,” Gates said. The 2008 financial crisis which led to the Great Recession resulting in 8.8 million job losses in the United States alone, and its repercussions were felt worldwide. The net worth of households across America is estimated to have fallen by … [Read more...] about Biggest stock market crash coming soon? Bill Gates says 2008-like crisis is certain
2008 stock market crash
At the beginning of 2008, stock markets are quite turbulent, which brings us back into considerations about crashes. We do not mean that the present stock market situation is comparable to an academic crash, not at all... But, in period of turbulence, it is always a good point to come back to fundamentals... We intend to present some simple and fundamental ideas about crashes and outliers, which may put some light on the present market status.In this document, we intend to give a simple presentation of these common but always intriguing market moves that are crashes. Indeed, the characterization of large stock market moves, especially large negative price drops, is of profound importance for risk management. One has always to consider the huge risk in front of high returns. The complex trajectory of stock market prices is the faithful reflection of the continuous flow of news that are interpreted and digested by analysts and traders. Accordingly, large market losses can result from … [Read more...] about Stock Market Crashes
Everywhere you look at the moment you see the headline 'Crash In Stock Market' followed by words of fear and uncertainty. Every news update on the radio and television opens with the latest updates from the days trading. "Share prices have been slashed" or "The Stock Market crashes again". Never before in my life have I heard such out of control fear and reporting on a economic issue. The markets have crashed before and I can promise you that they will happen again but is this the worst crash in the stock market that we have ever seen? If you ask the media "YES" but to be honest I don't really care. I think we should focus more on how to deal with it rather than just getting ourselves stressed and fearful.When are we going to see the headline? 'Crash In Stock Market - Once In A Lifetime Opportunity? Because in reality this is exactly what it is? There are two main way to take advantage of the current low cost of shares.1. Understand how to make money from … [Read more...] about Crash in Stock Market – Once in a Lifetime Opportunity?
Historical facts and figures suggest that a bullish and growing economy is always followed by a bearish market trend. On an average, if the economy has flourished for 6-10 years it is normally followed by a period of negative growth of 6 months to 2 years. This is when a rapid decline in the prices of stocks is witnessed in the market what is known as a stock market crash. Although the reasons for a crash are not exactly known, in general it is seen that rising stock prices over an extended period increases the optimism of the investors. They come under the illusion that stock prices will always rise and will never fall. The price of investments and real estate becomes sky-high. People start spending more than they earn and investing on credit.This economic situation causes the price-to-earnings (P/E) ratio of a stock to exceed its long-term averages. The investors indiscriminately use margin debt. This leads to an enormous percentage decline in market index over an extended period A … [Read more...] about Stock Market Crash
Could the bull market be over, and a stock market crash be imminent? In late April the Dow Jones Industrial Average sank more than 420 points, just under two percent, which leads some experts to claim that stocks have peaked. In addition, as US bond yields reached 3%, funds will slowly crawl into safe investments, leaving the stock markets with a shortage. Similarities between now and the pre-2008 financial crash were drawn but others have pointed to the near-record nine-year bull run the stock market has just experienced. What Causes Crashes? All of the famous US stock market crashes that occurred in 1929, 1987 and most recently in 2008 followed a similar formula. A new financial instrument or contraption creates a false sense of security, overinvestment causes a bubble, something happens where investors realize they made a mistake, sell quickly and the market crashes. However, if it was this simple then surely, we’d be able to predict when the next crash might happen? Yet … [Read more...] about How Close are We to a Stock Market Crash?
Writing in the wake of the 1929 stock market crash, New York Times columnist Will Rodgers commented that the level of panic was such that it induced a spate of suicide among traders. Although stories of increased rates of suicide in the aftermath of a financial meltdown are deeply ingrained in the folklore of finance, until now these have not been investigated empirically. Our new international study for the first time looks at the relationship between stock market fluctuations and the rate of suicides among the general population. The financial fortunes of many of us are tied in some way to the markets either directly through our investments or indirectly through our pension funds. Therefore, when markets collapse, the effects can reverberate through the whole of society. Our findings suggest that suicides increase both in years of significant stock index decline and in the year that follows it. This prolonged reaction suggests that it may be possible to use stock market … [Read more...] about Stock market crashes linked to suicide rate: study