Showing posts with label wolves. Show all posts
Showing posts with label wolves. Show all posts

Monday, October 15, 2018

The American official is confident that the arrival of institutional investors will make the crypto market Mature

The American official is confident that the arrival of institutional investors will make the crypto market Mature

The American official is confident that the arrival of institutional investors will make the crypto market Mature

CFTC approves of digital assets

He noted the growth of the digital asset industry due to the interest of traders and investors.

"We still have a long way to go, as some spot exchanges have a lot of problems, such as lack of transparency, a big conflict of interest and lack of system guarantees. That's a concern. However, they, like many other phenomena, need time to Mature. With the emergence of more institutional investors in the industry, I think we will see this maturation," the official said.

Giancarlo also said that the CFTC is closely monitoring the development of the crypto sphere.

"There are a lot of scams and deceivers in this market, and when we find them, we make them responsible for their actions in accordance with the law. Our powers were recently confirmed by two Federal courts, " the head of the Commission said.

He noted that the authorities would like to see more blockchain innovations. And in the context of industry regulation, the CFTC takes a "do no harm"approach.

"Under our supervision, the first two products of bitcoin futures appeared, and they actually depleted the cryptocurrency bubble formed at the end of 2017. In addition, we see how bitcoin becomes more stable than it was a year ago," Giancarlo explained.

However, he is confident that digital currencies will not replace Fiat in the future.

"I think cryptocurrencies will remain. They have future. But I'm not sure they'll ever be able to compete with a dollar or other hard currency. However, there is a whole part of the world that really wants to have functioning cryptocurrencies," the head of the CFTC added.

Saturday, October 13, 2018

The fall in the us exchanges accelerated in the last minutes of trading. Why?

The fall in the us exchanges accelerated in the last minutes of trading. Why?

The fall in the us exchanges accelerated in the last minutes of trading. Why?

Us stock indices sharply accelerated the decline before the closing of trading. This was due to passive investment funds. They began to sell shares before the closing of the exchange.

Journalists Wall Street Journal (WSJ) drew attention to the anomaly in yesterday's trading on the new York stock exchange (NYSE). On Thursday evening, October 11, the sale of shares accelerated sharply in the last minutes before the closing of the trading session. S & P 500 for these five minutes fell from 2737,38 to 2728, 37.

The culprit was the index funds ETF, writes Wall Street Journal. We are talking about exchange-traded investment funds that copy the dynamics of a particular index. Their task is to minimize the so-called tracking error, that is, the difference between the ETF dynamics and the tracked index dynamics. The error occurs when the money deposited or withdrawn from the ETF is not quickly converted into shares.

To match the index, many ETFs try to perform operations before closing trades-at the very moment when the final value of the index is formed. As a result, since 2012, according to the WSJ, the volume of transactions before the closing of the trading session increased to 26% of the total volume of transactions.

How to manage investments

Operations of index funds to rebalance portfolios at the last moment can distort the actual results of the day, the article says. This is a continuation of the old discussion between the supporters of active and passive ways of investment management.

The active approach involves self-selection of stock for investment, while the passive shifts the responsibility for selection on the index of operators — that is, those who composes the bonds, blue chips and other stocks by industry, thereby influencing the ETF.

Proponents of active management, who have been steadily losing ground due to too high a Commission in recent years, argue that passive strategies are good as long as they are followed by a relatively small proportion of investors. When their share becomes dominant, following the indices begins to bring additional volatility and even distortions to the markets that do not correspond to the true intentions of investors and the market situation. This is what happened at the end of trading on Thursday, October 11.

The collapse of the stock market as the beginning of a new financial crisis. What's next?

Investors and politicians from different countries are excited about the crisis.

The collapse of the stock market as the beginning of a new financial crisis. What's next?

Such a combination of the most unfavorable factors has long been gone, and it is unlikely that the world economy will withstand the burden of accumulated problems.
While some people speak with fear about the approach of the crisis, others — more far-sighted-silently prepare for it.

Each of us can get hit by a new financial Apocalypse, lose their jobs and savings, be at the bottom of the financial pit:

How to behave at the peak of the crisis? What exactly should be done, how to minimize losses?

You and I, in a sense, are lucky-we don't need to reinvent the wheel.
We can use the experience of going through financial crises, which for several decades have tested the strength of the world economy.
To do this, it is enough to strictly observe several important rules for handling your finances and emotions.

Here they are:

1) Don't rush.

The main thing when you are faced with a crisis is to control yourself and not to panic:

It is unlikely that you will be able, being in the midst of the crisis, to predict — what investments will be the most disastrous and what the most sustainable.
You are likely to make a mistake and not one. But the loss and the loss of money should not frighten you — because "the tide reveals all the boats."
It's hard to keep your composure when everything that you have created for many years is collapsing before your eyes. But if you" built for centuries", then your investments are guaranteed to withstand the impact of the financial element.

2) Do not believe the forecasts.

In the midst of the crisis, the Internet and the media are overflowing with forecasts and assumptions of analysts and experts.

However, it is IMPOSSIBLE to understand what will actually happen next!

So don't waste your time reading these predictions.
Blindly trusting them, you risk losing a lot more money than because of the crisis itself.

3) Divide the investment.

"Don't put all your eggs in one basket!"

Make sure you have invested in different financial instruments and assets.
This will significantly reduce your risks, untie your hands and allow you to earn money while everyone around them lose.

4) Buy cheaper assets.

In a crisis, people will be forced to sell a lot of their property:

If you see a good growth potential of these assets after the end of the acute phase of the crisis — then feel free to buy them.
To do this, you must have a stock of cash ("cash" — is the most valuable asset in the crisis).
A little tip: if you lack your own savings, try to unite with other people.

5) Don't fuss.

Shifting money from one asset to another (for example, from the ruble to the dollar and back), you are likely to find yourself "in the red" because of the payment of fees for the transaction.

And finally, a few more tips on financially literate behavior:

Start small-invest small amounts each month (part of your salary).

Do not invest the last money!

Beware of the promise of high interest (free cheese only in a mousetrap-an incredible profit is given only by crooks and financial pyramids).

1. The crisis is not terrible to someone who knows exactly how to behave in difficult times.

2. A reasonable investment will make you a wealthy person. Financially illiterate behavior dooms you to endless problems and hassle.

Wall street crash: investors dumping both stocks and dollars

Wall street crash: investors dumping both stocks and dollars

The us stock market has lost its strength. The collapse, which for several months experts predict, finally happened.

The indices suffered the strongest losses since February this year, having collapsed by more than 3%. Former leaders-technology giants-are now among the outsiders.

So, Apple fell by 3.6%, Google also by 3.6%, Amazon lost more than 6%, Facebook - about 4%, and Netflix collapsed by almost 9%.

As a result, the Nasdaq technology index fell by more than 4%, and this fall was the worst since June 2016.

Just a couple of days ago we wrote that all the conditions for the collapse have developed and it will be almost impossible to avoid it. It's only a matter of time.

Following the us stocks fell and other assets, in particular oil from $ 85 fell immediately to the area of $ 82 per barrel. Got and the Russian stock market, although he did not have time to absorb all the negative. Thus, Gazprom lost almost 3.5%, LUKOIL - 1.5%, Sberbank-about a percent.

Note a very interesting point - the fall in the us stock market is not accompanied by the usual for such cases, the strengthening of the dollar. And on the eve of treasuries were under pressure. The dollar at the end of the day fell to the basket of major currencies, that is, the capital from the stock market goes not to the protective assets, as treasuries, and investors generally prefer to get rid of dollars.

Theoretically, this description of what is happening is very generally suitable, but not so simple. First, we note that the yield of treasuries began to decline and it happened just before the closing, and today it continued.

That is, there is a demand for protective assets in the form of bonds, and these bonds are denominated in dollars.

Then how to explain the fall of the dollar, which today in the Asian session intensified amid the ongoing collapse of futures on us indices.

Perhaps we really see the collapse of the us market together with the collapse of the dollar, but we can not exclude that this is just a temporary manipulation of major players who are not the first time turning such a trick.

In September, for example, we have seen do not quite understand the weakening of the dollar, and then in the end quotes of the pair EUR/USD still went down. So it was at the beginning of this year, although then on the stock market about the fall was not yet out of the question.

In General, the collapse seems to have just begun, and its scale will be enormous. The main intrigue is how the dollar will behave. Given the increased geopolitical tensions, we may even witness the end of the era of domination of the us currency.

American stock market-started or "wolves, wolves"?

American stock market-started or "wolves, wolves"?

American stock market-started or "wolves, wolves"?

It is, of course, about the American stock market. "The market pumped up with steroids" is a definition in relation to the S&P500 I have heard especially often in 2012-2014. Since then, the index has grown more than a half times, and the voices of skeptics gradually dissolved in the news noise. When at the beginning of the year the index simultaneously fell 10%, these voices, like, again became audible, however, uncertain. This was followed by a promotion, and skeptics were out of work.

What is the difference between the fall of October? It is the attitude of market participants. When us stocks were adjusted at the beginning and middle of this decade, most participants saw signs of a new fall, similar to 2007-2008. But the fall did not happen. The last 2-3 years the correction was perceived already with no apparent panic, but nervously. And the fall of this week, and it is -7% (!), perceived already quietly, they say, turn down early. That and understandable, too often caution been bailed out deceived. Like in the parable about the boy who screamed, " wolves, wolves." The sheep weren't saved then.

I will not go into details about the set of reasons for this fall: the market is critically expensive, the growth cycle has been delayed for 10 years, and the market itself has grown very well, money rates are rising. The main thing – the growth cycle itself, for these reasons and because of the emotional situation of the market (few people expect a deep correction or reversal of the market down) has exhausted its potential.

This means that the potential of exchange energy has moved to the already ongoing and future sales. And then the current -7% is the beginning. Stock market-a complex system, not balanced, and therefore dramatically changing the paradigm of its behavior. The paradigm of the last 2-3 years is relatively slow growth. The most likely way out of it, as we can assume – a fairly rapid decline in prices. On him and do rate. Not local. With the groundwork months or even years to come. 1 500 – 2 000 p. for S & P500 – more sensible assessment, than current 2 728.