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black Monday

Article Index

ETF Black Magic: What's Really in the Hat?

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW -

ETFs

The first ETF debuted back in 1993. ETFs have displaced regular mutual funds as the investment of choice: The amount of money ETFs hold has skyrocketed more than 2,000% - compared with a paltry 120% for regular funds.

ETFs trade all day like stocks - making them "better" than mutual funds. ETFs are modern-day magical trading tools.

But if you know anything about magic, you know there are times where the trick goes awry...

Before You "Buy the Dip," Answer This One Question

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

august sell off dip

Having experienced their first true stock market correction in four years - and the potential beginnings of a rebound in the three weeks since - investors are naturally asking whether now is a good time to buy stocks ahead of the Fed meeting tomorrow.

You can see why it might be attractive to "buy the dip."

If you really want to buy stocks right now, I've got one question for you first...

Why Some ETFs Led the Markets Down Last Week

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW -

Of all the scary things that happened last Monday when the Dow Jones Industrial Average fell more than 1,000 points, nothing was scarier than what happened with exchange-traded funds (ETFs).

They crashed and exacerbated the market sell-off. They're not all a bad risk, and there are some we like to recommend that are quite safe - even essential - during a market reversal.

Investors need to understand exactly what it is they're holding. But this opens a can of worms Wall Street would rather leave shut tight, because there's a danger to investors from some of these.

Here's the truth...

How to Invest Now After Black Monday Volatility

By , Associate Editor, Money Morning • @KyleAndersonMM -

Dow Jones Industrial Average

Investors are reeling after this week's volatility, and many are wondering how to invest now following "Black Monday."

After falling 1,089 points intraday yesterday (Monday) and closing down 586 points, the Dow Jones Industrial Average fell another 204 points today. The Dow Jones is now down 12.1% in 2015.

While many on Wall Street were hitting the panic button, Money Morning Chief Investment Strategist Keith Fitz-Gerald was preaching patience...

The 10 Biggest Drops in Dow Jones Industrial Average History

By , Associate Editor, Money Morning • @KyleAndersonMM -

dow jones industrial average history

The Dow Jones Industrial Average closed down 586 points yesterday (Monday), marking the eighth-worst point drop in the Dow's 133-year history. On "Black Monday," the Dow Jones closed at 15,872.22, which was a 3.56% drop.

The biggest point drop in the history of the Dow Jones Industrial Average happened on Sept. 29, 2008, when the index plummeted 6.98%.

Here's how yesterday's drop for the Dow Jones Industrial Average ranks among its worst point losses...

Dow Jones Industrial Average Rebounds Today After "Black Monday"

By , Executive Producer, Money Morning -

u.s. stock futures

Futures for the Dow Jones Industrial Average today (Tuesday, Aug. 25) forecasted a 523-point increase as investors attempt to move past "Black Monday," in which the Dow Jones saw its largest intraday decline in its 133-year history.

This morning, China slashed interest rates again after falling another 7.6% on Tuesday. The Shanghai Index is now down more than 15% in two days, as concerns about the nation's growth rattles investors.

Here's everything investors need to know about the Dow Jones Industrial Average today...

Dow Jones Industrial Average Plummets Today as China's Stock Market Crashes

By , Executive Producer, Money Morning -

stock market crash

Futures for the Dow Jones Industrial Average today (Monday, August 24) forecasted a 616-point decline, nearly 4% as traders continue to selloff over fears related to the Chinese economy.

Nasdaq futures were down more than 80 points, or 5%, as tech stocks slumped in premarket hours. Traders around the world have dubbed Aug. 24) Black Monday."

Here's everything you need to know about the Dow Jones Industrial Average today...

Black Monday Stock Market Crash Returns to Haunt 2014

By , Associate Editor, Money Morning • @DavidGZeiler -

Stock Market crash 2014

Chart watchers have noticed an eerie pattern - the bull market of 1982, which ended in the Black Monday stock market crash of 1987, looks way too much like the current bull market.

And while no one can predict the markets for certain, the chart lines for the two bull markets have given many market analysts pause, including Money Morning Chief Investment Strategist Keith Fitz-Gerald.

Even if we don't get a full-blown crash, a correction is long overdue.

Here's what investors need to do now.

The Next Stock Market Crash Will Be Bigger Than "Black Monday"

By , Global Investing Specialist, Money Morning -

Friday was the 25th anniversary of Black Monday. On October 19, 1987 the Dow Jones Industrial Average fell 508 points, or a mind-numbing 22.6%.

How bad was it?...

Let's put it this way, if it happened today the Dow would drop 2,965 points on the session to finish at roughly 10,158. You can imagine the depression.

Now you know why they call it "Black Monday," even though it occurred in a sea of red.

In absolute or percentage terms it was the largest one-day drop ever-- beating the 13.6% drop on the worst day of the 1929 crash.

But then again, the 1929 crash was caused only by human beings. The 1987 event, on the other hand, was largely computer-driven. Of such is progress made!

For British observers like me, Black Monday was memorable as being the first business day after the Great Storm, the first hurricane to hit the British Isles since 1703.

The relief at not having lost a third of the British Navy, which happened on the previous occasion, made Black Monday seem a minor hiccup. I actually bought some shares as the U.S. markets opened, and was delighted to see that they closed at a higher price than I paid!

There was also the satisfaction of hearing about a rather smug ex-colleague, who had received a large payout from the bank where we had worked (no such payout came my way, alas) and had invested it and margined 50% in the U.S. market.

Alas, blessed by Fortune though he was, he was awakened at 1:30 am London time by a margin call for $700,000. I always felt it was something of a fitting recompense for greed and creepiness to authority.

How the Market Crashed

Of course, those whose trading lives don't extend back to 1987 doubtless feel that it can't happen again.

Well, I have news for you....



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