In
the event of a market crash, it can call on clearing members such as Citigroup and Goldman Sachs to pool their resources and fulfill swap contracts.
They're particularly useful in
the event of market crashes, where investors who invested through traditional ETFs often end up taking losses.
Not exact matches
The firm also notes that a recent report from the New York Fed, which we wrote about here, discusses the role that electronic and automated trading could be playing in the bond
market, particularly how these dynamics may have exacerbated the bond «flash
crash,» an
event JPMorgan CEO Jamie Dimon said is the kind
of thing that happens «once every 3 billion years or so.»
As Olaf Carlson - Wee, founder
of the hedge fund Polychain Capital and a bull in the
market, told me during a cocktail hour after the
event, «It's only a bubble if it
crashes.»
The general importance
of reducing causal uncertainty surrounding other historic flash
crashes is similar to the importance
of reducing causal uncertainty surrounding the October 2014 U.S. Treasury Bond Flash Crash: causal uncertainty threatens to erode trust in
markets and impedes action to prevent similar
events from occurring in the future.
In addition, I would point out that equities are purchased and traded by private individuals, who inherently have time value
of money and liquidity preferences that are also priced into equities, given their specific limitations and characteristics (e.g., in the
event of a stock
market crash, liquidity may disappear at the exact moment it is most desired, and therefore the risk
of that lack
of liquidity is priced into the equity).
An unhedged position does take a certain amount
of extended risk in the
event of a deep and abrupt
market crash, but as I've frequently noted, those have historically been confined to conditions
of both unfavorable valuation and unfavorable
market action.
That's why during a recession, you want a lot
of cash, cash equivalents, or access to money in some way at your disposal in the
event that you lose your job, the stock
market crashes and you don't want to sell your shares at depressed prices, you suffer a pay cut
of some sort, are disabled, or you own a business and sales start to drop.
The financial
crash of the U.S. housing
market during the 2008 crisis is one
of the most recent and well - known black swan
events as
of 2017.
If the
market was «certain to
crash» in the
event that Bear Stearns failed, then the
market is certain to
crash anyway, because Bear Stearns wasn't the last shoe to drop - it was one
of the first.
But in the
event of a housing
market drop or
crash, those who bought most recently with high - leveraged mortgages will be underwater quickly.
A stock
market crash can be a side effect
of major catastrophic
events, economic crisis or the collapse
of a long - term speculative bubble.
WisdomTree Bloomberg US Dollar Bullish (USDU): To hold cash in the least «ugly» currency in the
event of a stock
market crash
At this point, I thus think that stock
market crash event - trigger will be the detonation
of a derivatives bomb (Warren Buffet's weapon
of mass financial destruction).
However, subscriber numbers didn't get off to the start the
market had hoped, and a disappointing TV contract renewal with Comcast's (NYSE: CMCSA)» NBC Universal sent the stock
crashing to around the $ 10 level within weeks
of the big
event.
The only flaw is that this analysis is done in isolation, but an
event that would lead to Chinese divestment
of U.S. Treasuries would only happen in a geopolitical environment in which the
events causing the divestment would have confounding effects including a probable stock
market crash, increased militarization, etc. which might lead to a flight to safety that could mitigate this effect on interest rates, or exacerbate the effect.
«Early detection
of extreme financial
events:
Market crashes are anomalous features in financial data fractal landscape.»
He uses complexity theory to study the myriad causes and effects
of catastrophic
events, ranging from earthquakes to stock
market crashes.
BALL STREET STUDIO: Sony Pictures TV Studios / Showtime TEAM: David Caspe (w, ep, sr), Jordan Cahan (w, ep, sr), Seth Rogen (d, ep), Evan Goldberg (d, ep) LOGLINE: Set against the
events of October 19, 1987 — aka Black Monday, the worst stock
market crash in U.S. history — it's the story
of how a group
of outsiders took on the blue - blood, old - boys club
of Wall Street and ended up
crashing the world's largest financial system, a Lamborghini limousine, Don Henley's birthday party and the glass ceiling.
This will be the last broker to go under in the
event of a stock
market crash.
Even better, you've got plenty
of fluff that can be trimmed in the
event of an ugly bear
market or
crash.
The cause
of the massive stock
market drop can not be attributed to any single news
event because no major news
event was released the weekend preceding the
crash.
Detractors
of the EMH also point to
events such as the 1987 stock
market crash, when the Dow Jones Industrial Average (DJIA) fell by over 20 % in a single day, as evidence that stock prices can seriously deviate from their fair values.
If the
market was «certain to
crash» in the
event that Bear Stearns failed, then the
market is certain to
crash anyway, because Bear Stearns wasn't the last shoe to drop - it was one
of the first.
You don't need to parachute from the edge
of space or
crash - land in Lake Michigan to pull - off a successful law firm
marketing event.
Only that cataclysmic
event — the
crash of the mortgage securities
market and the subprime crisis — hasn't hit everyone.
A new
crash test dummy is hitting the
market and it's being used to help keep your child safe in the
event of a car accident in Chicago and elsewhere.
When you are putting your faith in a product, especially a product like a large, heavy and fast moving vehicle, you want to know that it is going to work correctly, and that it will protect you to the best
of it's
marketed ability in the
event of a
crash or car accident.
The economic fallout from
events such as 9/11 and the
market crash of 2008 have left newly adult Millennials struggling to find quality jobs that allow them to pay off their high student loan debt.
According to Post, the real estate industry would see a very different impact if the
market were to
crash compared to the
events of 2008.
For those buyers hoping for a bit
of a slowdown, due to down payment changes and possible rate changes, keep in mind once the dust has settled on these
events, we
crash headlong into the spring
market.