381–390 of 1001 posts
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Would they also circuit break on 7% increase, in order to give people time to come back from positive feelings?
No, because if the market is up 50% because we humanity has discovered an immortality serum, nobody is panicking. There's no downside in great news (other than the possibility of a quick reversal thereafer...)
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The exchange is open from 9:30am to 4:00pm, but you and I are free to trade amongst ourselves at midnight on a Friday if we'd like
Aren't we also free to trade amongst ourselves during a market circuit breaker event?
Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.
"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…
It's not intrinsically a "bad" thing per se and it was something already established long before the current set of conditions arose. But none the less, it's an artificial constraint introduced on trade systems that is likely beneficial.
It did the trick. Everyone is talking about it and my friends are buying.
[0]: https://theirrelevantinvestor.com/2020/03/06/dont-catch-a-fa...
This is creating one of the best buy opportunity ever. It's just sad that only the rich will benefit. The poor will just get poorer.
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Take this with a train of salt because I’m not an economist, but one of the most often touted general points of the need for a correction is the cyclically adjusted price to earnings ratio being elevated [1]. In other words, stocks are more “expensive” and thus ripe for a correction https://www.multpl.com/shiller-pe
> train of salt Nice Freudian slip.
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I dont think its time to buy yet. If we have a multiple month disaster that requires quarantining most of the population the market will fall further.
Don't buy after the first big city is quarantined. Maybe after the second or third... But know you are taking an incredible risk unless you are using funds you can hold in that position for years.
Isn't that the case whenever one buys equities? Why is now special? It's definitely less risky to buy now than it was in January.
So, children of summer (there are many here who have only known the longest bull market in the last century), let me give you some free advice. If you're looking at this and wondering when to get in, to bargain hunt essentially, and you're asking yourself questions like "today? next week?", you need to step back and think again. Some points to consider: - If your time horizon is 10+ years out probably none of this ma…
The Nikkei is still ~50% below its 1989 high. Hasn't even approached that level since. Downturns can go on for decades.
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Would they also circuit break on 7% increase, in order to give people time to come back from positive feelings?
Looks like it's also on increases, yes: https://www.sec.gov/oiea/investor-alerts-bulletins/investor-...
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The Nikkei is still ~50% below its 1989 high. Hasn't even approached that level since. Downturns can go on for decades.
I didn't think this could still be true but apparently you are correct [1]. Wow. That being said, there are factors to contribute to this: - Essentially zero population growth [2] - A government and a system that propped up an insolvent banking system that likely extended the downturn significantly [3] - A massive asset bubble that we really haven't seen the likes of, not even in the subprime era. [1]: https://www.ma…