Live data from Hacker News

Trading halted as U.S. stocks plummet

axios.com

441–450 of 1001 posts

Re: Trading halted as U.S. stocks plummet

#441

Earlier quoted context omitted.

Yep, over half of GDP growth is tied to population growth. If 2% of humanity is about to die...

2% (maybe more actually) is the mortality rate of those infected. But so far infection rate was 0.001% ; it would need to be 3 full orders of magnitude worse to even approach an infection rate of 2%....

Growth in cases has been exponential, as it should be. It just depends on when it turns logistical.

Re: Trading halted as U.S. stocks plummet

#442
post #315

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.

How frequently do the 225 companies in the Nikkei get updated?

Maybe more a reflection of how the index is managed.

Re: Trading halted as U.S. stocks plummet

#444

Earlier quoted context omitted.

Okay thats fine, but who implements/decides these circuit breakers ? And what purpose to they serve only to limit a mass sell off ? Nice point about only 2 daily. But still seems crazy.

Mass sell offs tend to create unorderly markets, which is not beneficial for anyone. The concept was introduced in US equities after the ‘87 crash, but was only consistently implemented for NYSE-listed stocks. In ‘13 these were made consistent and market wide (thus MWCB), set against a widely published value of the S&P (so that the control was predictable; thus how it executed today). FYI, there are also bidirectiona…

> Mass sell offs tend to create unorderly markets, which is not beneficial for anyone.

It's beneficial for people who want to buy stocks cheaply or if we truly believe that markets are about price discovery.

Re: Trading halted as U.S. stocks plummet

#445
post #315

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.

>Downturns can go on for decades.

Exactly. It feels like we've swung way too far to the side of "put your money into the market and forget about it". We have no way of knowing what the future looks like. The average bear market wipes ~35% or ~4.5 years worth of gains from your portfolio. Avoiding even a bit of that can have a substantial effect on your savings in the long run.

Of course, timing the market isn't easy, and I'm not giving any advice on buying or selling. But the idea that these peaks and valleys don't matter simply isn't true. They matter, a lot.

Re: Trading halted as U.S. stocks plummet

#447

Earlier quoted context omitted.

Without going into too much detail, short answer is yes. Most people don't seem to know how far away current setup is from 'free market' touted in school. It is weird given that this information is not hidden. It is just not widely spread.

The stock exchange is privately owned, the owners/management of the NYSE and other exchanges chose to implement circuit breakers like this. The exchanges still have to operate within the bounds of regulations, but nothing is stopping Joe Blow (other than capital, expertise, navigating regulations, etc.) from setting up his own stock exchange that doesn't have any circuit breakers put in place to prevent flash crashes…

> from setting up his own stock exchange that doesn't have any circuit breakers put in place to prevent flash crashes.

If you are facilitating the trading of regulated instruments this is wrong and there are indeed SEC regulated circuit breakers you will have to implement.

Re: Trading halted as U.S. stocks plummet

#448
post #344

Earlier quoted context omitted.

No. This is just one of several places where the laws systematically favor the bulls.

Believe this is not a "law" but a "policy" Regardless, your sentiment is spot-on.

Its an enforcement policy directed by the SEC. Its effectively a law, you can’t opt out for instance.

Re: Trading halted as U.S. stocks plummet

#450
post #392

In a world with zero-to-negative interest rates, unlimited margin available for the big players and a generation of boomers sold on the idea that stock appreciation (not dividends) is going to fund their retirement, what's the value of any company? Who knows? Until dividends are tax advantaged vs. capital gains, the insanity will continue. Leverage, huge risks and various shades of fraud, rather than responsible busi…

What is the best way I can contribute to making dividends tax-advantaged vs. capital gains?

Well, my plan would be to treat dividends as tax deductible to the company and then flow through to the owner, as with LLCs. Capital gains would be taxed at a windfall rate (e.g. the highest marginal income tax + payroll tax rate + 10%).

The nice thing about this is that the progressive income tax system then makes equity ownership very attractive to lower-income households, and less attractive to rich people, thereby distributing ownership over a larger and more economically diverse group.

I have no idea how to get people to buy in to this idea. I have had no success convincing even my own family that this change needs to happen, and my parent post is being downvoted. ¯\_(ツ)_/¯

Post reply on HN