impact - ITGL

The Impact Of The Stock Market’s Crash On Rural America

Posted on 30/04/202406/05/2023 by atunas

Stock market crashes are social phenomena where external economic events combine with crowd behavior and psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. Xavier Gabaix, a finance professor at New York University, has derived a crash-frequency formula that he believes captures a universal trait of all markets, not just equity markets or those in the U.S. According to that formula, the odds of a 12.8{bf6128eaee7daf804a40e739f155a69f2d5a72ca2bacccc9954495bcd60bdcac} crash in any given six-month period are 0.92{bf6128eaee7daf804a40e739f155a69f2d5a72ca2bacccc9954495bcd60bdcac}, almost as low as the actual frequency in the U.S. stock market over the last century. These…

The Impact Of The Recent Financial Crisis On 401(k) Account Balances

Posted on 12/04/2024 by atunas

A stock market crash is aÂ rapid and often unanticipated drop in stock prices. It is also clear that the decline in stock prices after mid-1930 was even more dramatic than the falls during the Wall Street crash. In 1929 the Dow Jones Industrial Average (DJIA)© Index peaked on 03.09.1929 at the close of 381.17 points. If you sold up every time you read how some pundit is predicting a crash — especially when it’s someone you’ve never heard of before — you’d be poor and your broker would be rich with the commissions you’ve paid. For Carla Due (right…