Keyword below to browse our 2010+ postings as of mid-Sept; Founded: Sept 6, 2010.. We’re 100% Ad free- We sell Nothing..We seek no $$.. Agenda: Educate and Inform. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations. Overall, the results suggest that the date of the interview in HRS 2008 was largely exogenous to stock market expectations prior to 2008, a result that is especially robust in terms of disagreement. Many Americans speculated in the stock market, often with large amounts of borrowed money, and became extraordinarily wealthy.
As you can see, if you look at the chart above you can see that the stock market has come into some trouble every 7-8 years over the last 20 years. My expectation is for these paper metals to fully participate in the impending market crash, but with delayed timing of the price peak followed by a similar long term deflationary collapse. If the Dow 30 were a fixed lineup of companies instead of rotating in new ones at will, the 1929 Dow 30 would be down 90+% between then and now. If you were paying attention to what many of these market experts are doing, you already have an idea on how to protect yourself from a market crash.
After reaching a new level of equilibrium in March 1987, approximately centered on the upper 3-sigma limit established in the preceding period, the continued at this level through September 1987. Our results imply a temporary increase in the population average of expectations right after the crash.
The selling became intense on Monday, October 23, and the market fell 6.3%. By October 24, Black Thursday , the selling frenzy reached a critical mass and turned to flat-out panic. I’ve always like Philip Morris (PM stock symbol) and Altria (MO stock symbol) as they pay very good dividends. Another long market crash -one that many people still remember (think Vietnam and the Watergate scandal). Didier Sornette ‘s work suggest that stock market crashes are a sign of self-organized criticality in financial markets. But in the later 1920s, stock investment began to decline due to lack of confidence.
Unfortunately for anyone investing in 1931, the unprecedented wealth destruction happened past this point, after the initial stock market crash and the onset of the banking crisis. The Dow Jones even managed to claw its way back up partially between November 1929 and early 1930s. According to Santschi, the correlation coefficient between monthly buyback volume and the stock market’s level, for the period from 2006 until this spring, was 0.61. That’s highly statistically significant. In response to the devastating effect of the Great Depression, a series of economic programs was adapted by the US in1933-36.