What does it take to trigger a crash in the stock market? A once-in-a-century pandemic? The biggest war in Europe in 70 years? The US Federal Reserve instantaneously cutting off the supply of the opium of record liquidity and low interest rates? Multi-year high inflation? How about black magic? The Oxford Dictionary defines black magic as a type of magic that is believed to use the power of the devil in order to do evil. In a world where boring financial data, profit and loss statements, and complex macroeconomic events sway the everyday movement of stock prices and stock indices, one Rajkot-based stockbroker claimed last week that he spent more than Rs 8 crore to engineer a multi-day crash in the stock market with the help of esoteric black magic. Close “We are responsible to a great extent for today’s fall and the fall of the past few days in the market. You won’t believe it, but we have spent over Rs 8.5 crore today in kala jadu (black magic) to create … [Read more...] about A lone bear, black magic and a $235 billion stock market crash
Why stock market crash today
Major Moves I've been talking a lot about the 10-year Treasury yield (TNX) during the past few weeks because it has been experiencing a rather dramatic decline, falling to levels not seen since December 2017. One of the reasons I reference the TNX so frequently is it is tied to a variety of assets, indexes and indicators in the financial markets, including the 30-year fixed-rate mortgage . The 30-year fixed-rate mortgage is the most popular mortgage among individual home buyers. According to Freddie Mac, approximately 90% of home buyers choose a 30-year mortgage when financing their homes. So what's the connection between the TNX and the rate on a 30-year mortgage? These two rates have a positive correlation. When the TNX moves higher, the 30-year mortgage rate tends to move higher. Conversely, when the TNX moves lower, the 30-year mortgage rate tends to move lower. In fact, these two rates move so consistently together that mortgage brokers will often approximate what the … [Read more...] about Will Falling Interest Rates Boost or Spook the Stock Market?
Share to Twitter Share to Linkedin Key takeaways Bear markets occur when prices drop more than 20% from recent highs Bear markets can last a few weeks, months or even years, depending on the cause and underlying economic conditions With inflation at a 40-year high and the Fed eyeing future rate hikes, a recession isn’t out of the question Between investor sentiment and economic factors, market indices currently border on bear market declines – but we’re still in correction territory Are we in a bear market? That’s the question on everybody’s mind as inflation hovers at 40-year highs, interest rates climb and stocks drop. And as the market so elegantly demonstrated in 2007, bulls can’t charge on forever. Now, after a decade of bullish markets – and two years of particularly astronomical returns – it’s time to consider whether bears are on the march. Download Q.ai for iOS today for more great Q.ai content and access to over a … [Read more...] about Are We In A Bear Market? Here’s How To Tell
So much for the relief rally. advertisement One day after stocks shot upward in response to inflation news that wasn’t as bad as it could have been, U.S. markets tanked on Thursday as the reality that things are still pretty bad set in. As expected, the Federal Reserve announced a rate hike of 50 basis points at its May meeting on Wednesday while also indicating that more hikes are coming. This announcement compounded last week’s troubling news that the economy unexpectedly contracted during the first quarter of 2022, raising fears of a recession. Combine that with a round of largely disappointing earnings for tech companies that had been flying high during an earlier phase of the pandemic, and you can see that signs of an economic comedown are pretty much everywhere. On Thursday, the Dow Jones Industrial Average saw all of its Wednesday gains wiped out, plunging some 1,100 points as the sobering news of inflation rate hikes kicked in. The Nasdaq Composite … [Read more...] about Stocks and cryptocurrencies are crashing today. Here’s why
Sharad Shah Sharad Shah is a rare or perhaps near extinct species in the Indian stock market: the permabear. And unlike most traders of his vintage, he makes no bones about his market strategy, short selling stocks. A stock market player for nearly 40 years now, Shah is considered something of a maverick by those who know him. Many of his contemporaries find him too outspoken and even loud, but Shah is not the one to mince words. His trading style, or rather his investment ideology, if one can call it that, has landed Shah in trouble quite a few times in the past. Angry promoters have complained about him to the regulator, to investigative agencies, to the cops. Some threatened him with violence for short selling their stocks, and a few others even made good on their word. Not that it made any difference to Shah’s worldview of the stock market. With shares now in a freefall, Shah feels his theory has been vindicated, and it is payback time. Benchmark indices are down close to 15 … [Read more...] about Long story short: More pain ahead in midcaps, smallcaps, says veteran trader Sharad Shah
Share to Twitter Share to Linkedin Key Takeaways: Bitcoin plunged in value this week, and other cryptos followed suit Some investors are losing their life savings, while others are considering buying the dip Q.ai’s Crypto Kit can help investors navigate the crypto world amid uncertain times It’s been a turbulent time for the markets, in general. The last few months, er, years, have been especially uncertain for investors at large. But, as much as the markets are moving up and down these days, cryptocurrencies have really been through the ringer. Bitcoin and other cryptocurrencies fell in value on Thursday following a digital asset sell-off that has already wiped almost $600 billion in market capitalization in a single week. Download Q.ai for iOS today for more great Q.ai content and access to over a dozen AI-powered investment strategies. Start with just $100. No fees or commissions. To kick off the week, Bitcoin plummeted in … [Read more...] about Is The Crypto Crash A Sign Of Trouble Or A Time To Buy The Dip?
The bottom fell out from one of crypto’s fastest growing blockchains, LUNA, which promised to succeed where bitcoin failed. Its predictable collapse reverberated across the entire crypto market and is forcing investors to pick up the pieces. C rypto’s history has been defined by five resets. The first came in 2014 when what was basically the only bitcoin exchange in the world, Mt. Gox, imploded following a nearly half-billion-dollar hack. The second, in 2016, was The DAO hack, when an attacker tricked a smart contract into giving away $60 million worth of ethereum, worth $8 billion today. The third, in January 2018, occurred when the ICO bubble popped, starting a year-long decline wiping out 60% of the crypto market or more than $700 million mostly in the form of worthless junk tokens. The fourth took place in March 2020 when crypto lost 40% of its value along with most other global financial markets. Each reset not only led to price-market capitalization increases, they … [Read more...] about Crypto’s Great Reset: How Digital Asset Investors Will Recover From The Market’s $1 Trillion Meltdown
Share to Twitter Share to Linkedin It was a rocky week for Tesla shares– until Musk’s early Friday tweet. That helped the electric vehicle maker regain some lost ground. With a single tweet at 5:44 AM Friday, Tesla and SpaceX chief Elon Musk simultaneously placed his $44 billion Twitter takeover on hold and demonstrated the platform’s power to move markets. Twitter shares, which plunged in pre-market trading early Friday, ended the day down 9.7%, while shares of Musk’s electric vehicle maker rallied 5.7% Friday to close an otherwise challenging week down 11.1%. The fortune of the world’s richest person–worth an estimated $232.5 billion–rose by $9.5 billion Friday. His losses for the week were cut to $23.4 billion. The divergent fortunes of Twitter and Tesla shareholders are no surprise to Columbia University law professor John C. Coffee, an expert on corporate governance. “The two stocks are logically inversely related, since what is good for Twitter … [Read more...] about Elon Musk’s Early Morning Tweet Sends Twitter Shares Crashing, But He Ends The Day Billions Of Dollars Richer
As the cryptocurrency market burns through its worst crash in years, Twitter is ablaze with charts streaked in red, suggesting that a new crypto winter is here. advertisement advertisement The great downturn came during a bearish week for Wall Street stocks, a correlation that didn’t escape notice: I never wanted to see this, but if you check the charts it's obvious: #Bitcoin never had a bull run without #Nasdaq support. pic.twitter.com/OFb2eN9o5q — CryptoNaut.UST ???? (@CryptoNaut1000) May 12, 2022 Despite working through what must be the most horrifying fire drill in recent memory, some traders still tried to joke about the frazzled days spent glued to their computer screens, watching assets fall through the floor. advertisement How my charts are set up today. pic.twitter.com/QwZcpoUo2n — Philakone (@PhilakoneCrypto) May 12, 2022 Others found a different type of humor in the madness. Let's play a game… … [Read more...] about The crypto crash, in 10 charts
Share to Twitter Share to Linkedin One of the curious accoutrements of the Kremlin are the very large benches that sit just outside it, almost too big for comfort such that the first time I passed them I imagined giant Cossacks resting themselves as they visited the capital. What those giant Cossacks might make of today’s Russian army would be interesting to know, especially with Monday’s ‘Victory Day’ military display in and around the Kremlin. It is expected that the Russian President will use the occasion to formally declare war on Ukraine and call up a full mobilisation of troops (especially conscripts). Such as move will deepen the conflict around the invasion of Ukraine, may result in the use of heavier and more deadly armaments and further entangle Ukraine in a proxy war. Of course, another avenue open to Vladimir Putin may be to use Victory Day to engage in some much needed risk management, and to declare a ‘mission accomplished’ in the context of … [Read more...] about When Will The Ukraine War Stop?