The study shows that there is sharp and significant decline in stock market prices the day after India loses a match. So, there tends to be some weird factors (like mood of the investors etc.) A group of two dozen stockbrokers and store owners gathered under a buttonwood tree to create the Buttonwood Agreement, which gave them membership on the … Above, I have presented stories that cannot explain what has been going on. This means that the short-run cost to society is bigger this time around (a deeper fall stretched over the same period). Yes, it is true as per the research worked out by two esteemed professors of Monash University, Australia few years back. The history of the stock market is one full of quirks, anomalies, and quite unbelievable facts. BSE in India. In this graph, I document that The post is a compilation of crazy facts about Stock markets which would blow up your mind. Not only does it save time, it also prevents him from eating large meals that make him sleepy. It is much more than the second country, Japan, that makes 7.59% of the world stock market. 7 years back Person A bought a Royal Enfield bike worth of 1.6lakh. A huge downgrade. 50 Fun Facts About the Stock Market October 12, 2018 October 14, 2018 Everyone knows about the great crash in 1929, how we first coined the term Black Thursday (Oct 24th), Black Monday (Oct 28), and Black Tuesday (Oct 29)… but did you know that the Dow Jones Industrial Average wouldn’t recover to the 1929 peak until 1954? At year-end, this portfolio has shown higher returns than investments of 94% of Russian joint investment managers. has been equally spectacular. gains/losses in the SP500 during the last 50 years. After eight quarters, GDP is basically back at its pre-crisis level. This is a no-brainer: Markets always recover. But the United States stock market is the biggest by far! All Instrument Types. The following five facts should shed some light on the NYSE and why you should care about the stock exchange going forward. SSRN, March 7, 2016) by scientists from the university of Leicester. The weird stock market. In 2001, the door was opened again during US President Clinton’s visit, and there was a major crash in the stock exchange. I Breaking News . 15 Facts To Learn From The 1929 Stock Market Crash The 1929 Stock Market Crash has shaped generations, but with it fading fast from memory, how much do you really … Here are some fun facts about the world's "most customer-centric" company. activity picks up again, the economic rebound will be stronger than in 2008, Last week, we got figures for GDP in the US and Europe. which affect their involvement in the stock market and hence the demand/supply of the stocks. He was a young passionate guy than an investor. This is obviously not due to FAANG. The fall in late-February/early-March was the fastest bear market in history, the rebound has been historically fast, too, and – in spite of the worst recession ever – the stock market is currently back at pre-recession levels. Males are driven by testosterone. The figure shows that Eurozone GDP was 5% lower in Q4 2008 compared to Q2 2008 whereas it is 15% down in Q2 2020 compared with Q4 2019. The most expensive stock in world is the Warren Buffet’s Hathaway, Class A, which is priced at USD 2,13,330 per share. And about 20% of book value. Strange that stocks recover in spite of this. In 1954, economist Armen Alchian was able to figure out what the secret fuel was for the newly … it has also been one of the fastest recoveries. January 1, 2020: Stock markets reached a temporary peak on February 19, after which they tanked dramatically. Finally, if you claim that you understand why markets fell so fast in February/March (perhaps because we were facing the worst recession ever – which, by the way, is a good explanation), then you face a challenge explaining why markets recovered so strongly in April/May/June, as the recovery cannot be explained by a brighter economic outlook. economy should be puzzled. October is considered as the cursed month as the two worst stock market crashes in history occurred in this month. What about the length of the recovery? As you see from the first graph above, emerging markets have recovered, too. The error caused Mizuho’s shares to drop like a stone. 1. Back in 2006, a broker for Mizuho Securities in Japan planned to sell off a single J-Com Co. share for 610,000 yen. While the stock market may seem like a wild place, it is possible to grow wealth manifold if you enter it with prudence and planning. That investor, well yeah, he now owns a 3bhk apartment & a mini cooper. recession in 2008. After all, it was on Wall Street where the NYSE was created its earliest form in 1792. US, emerging market, and world stock markets (MSCI), normalized to one on for, e.g., the Eurozone that it will last more or less equally long this time (expectations Trillions of dollars flow through the major and minor exchanges and most people believe the US is the birthplace of the stock market. This graph Here are 5 facts about the stock market that may prove to be quite shocking: Fact #1: Market Manipulation Takes Place More Often Than You Think. Again, in 2008 when the gate was opened to install a new statue, the markets crashed suddenly. It was a severe Thanks for sharing with us. US real GDP fell by more than three percent in Q3 and Q4 2008, whereas In my next post (link), I will offer my view on this. During a bull market, stock market prices rise; taken as a group, stock shares increase in value. As bull was assumed to be opposite of the bear at that time so it was termed as the upward movement of the market. The rebound 2008 with the cumulative drops during the first two quarters of this year. After 2008, it took around two years In the Bombay Stock Exchange, there is a statue of a bull in front of the second gate of the building. $36.6 trillion – the estimated size of the world stock market at the beginning of October 2008.; 22.6% – the biggest fall of the Dow Jones in 1 day! Somebody leaving for the moon in January and returning now would not be able to Or, how the Fed saved equity and credit markets, The weird stock market. Some claim that it is not the overall stock market (typically these people refer to the SP500) that has recovered. In other words, this recession is much deeper – one can multiply the drop in 2008 by a factor of three or so to get the drop this time – and it will take several years before economic activity is back at pre-crisis levels. world stock market later still. Women appear to take the same decisions regardless of their recent successes in the stock market. Also, some markets, such as the Danish, have recovered even more spectacularly than the US market. The point here is that this rebound has just been amazingly strong. around, US GDP has fallen by more than ten percent already and Eurozone GDP is As we all know stock prices are ultimately governed by supply and demand of the stock. I calculate rolling 11-week The graphs shows that no other 11-week period since 1970 has witnessed such a large gain (I cherry-pick the 11-week period, but the main message is that the rebound has been spectacular, and this message is robust). Part II: Potential explanations. before economic activity had reached its pre-crisis level. Companies considered "blue chips" today include Microsoft, Amazon and Apple. In this post, I describe the facts. Stock markets fell for a couple of weeks and then rebounded. The NYSE trades $1,520 billion of shares per month, while Shanghai trades $1,278 billion. The monkey chose 8 cubes, and an investment portfolio was formed out of these shares. In my next blog post (link), I will offer my interpretation of the evens. “0” in the figure is September 19, 2008, respectively February 21, 2020: During the first couple of weeks of this spring’s crash, it looked like autumn 2008. Thanks to a typing mistake on his part, he ended up with 610,000 shares for 1 yen each. 45% until June 8. Stocks are known as shares in a company. Cows steered into a bull market. In 2008, stocks just continued falling. Fluorescent tubing was dimmed in light trading. The fall in late-February/early-March was the fastest bear market in history, The name is derived from the highest value poker chip, which is blue. Long gone are the days of Bernie Madoff, right? Observing The US stock market is already back at its The reason for such a high price is that the company doesn’t splits the shares. All rights reserved. Enter your email address to subscribe to this blog and receive notifications of new posts by email. It shows the Danish, The behavior of the stock market during this recession has been perplexingly. Person B, who was a budding investor instead bought 700 (round figure) shares of Eicher Motors (holding company of Royal Enfield) worth of 240 each. You hear/read many explanations. In late 2008, Russian magazine “Finans” masterminded an experiment. This superstition has become so popular that people start selling off their positions even if there is any rumor of opening the gate. This caused a loss of around $224 Million. Required fields are marked *. In this graph, I compare the behavior of the SP500 during autumn 2008 and the corona crisis. There is a ‘pirate stock exchange’ in Somalia where locals can invest in pirate gangs planning hijacking missions. Your email address will not be published. E.g., the IMF WEO in June lowered its April forecasts for global economic output to –4.9%, from –3.0%. for 2020 and 2021 are from the EU Commission, Spring 2020). (1987) 15.34% – the biggest gain of the Dow Jones in 1 day! than in 2008 (in 2008, we had a housing bubble, a weak financial sector, etc.). have argued myself that there is hope that, when we get a vaccine and economic Pencils lost a few points. – Source. Quotes. What if I say Sachin Tendulkar and the Indian National Cricket Team factors the performance of Stock market in India? A Bull Market in Banks and Other Weird Facts of the Stock Bounce. If a company issues 100 shares, and you own 10 shares, then you own 10% of the company. She died a multi-millionaire. The door was first opened in 1992, and the famous Harshad Mehta scam happened soon after it. ... with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. see any trace in the stock market of the worst recession ever. Walt Disney gave his housekeeper Disney stocks every year for the holidays. Quantitative Easing (QE) and biases in research, The Fed’s “Whatever it takes” moment. Even US small-cap stock have recovered. What's weird about this story is that on the surface the stock looked insanely cheap. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Since 1950, the Dow has declined 1.1% and the S&P 500 has declined 0.7% on average during the month of September. We use cookies to ensure that we give you the best experience on our website. This is in stark Observing the stock market during this recession has been a like watching a roller coaster. CPR Spreadsheet with Narrow Range Indicator : Free Download. The Wilshire US Small-Cap Index gained an astonishing 57% during the March 23 through June 6 period. The NYSE isn't the oldest stock exchange. VV or W: When did (or does) this recession end? The number of traded companies varies, usually proportionately to the size of the country, but can vary from a couple hundred to as many as a couple thousand. This figure shows I’m speaking of course of Sturm Ruger (NYSE: RGR). When they succeed in the stock market, the increase in testosterone levels and confidence, leads to invest even more, and more irrationally. 1. the US stock market was back at its summer-2008 level in early 2011 only, and the Algorithms have replaced human beings to comprehend market behavior. Stock market report Today's Stock Market Report: Helium was up, feathers were down. Wall Street is a not only a physical location in lower Manhattan, it is also a colloquial expression that can be used to describe the entire stock market. To understand it, we need to answer three main questions: (i) why did stock markets fall so spectacularly during February/March, (ii) why did stocks rebound so spectacularly during April/May, and (iii) why is the stock market currently at its pre-crisis level? The problem – in a nutshell – is that if you claim that you understand why stocks are currently at pre-recession levels, then you face a challenge explaining why we needed to go through the fastest bear market ever during February/March. Very interesting stories…Never heard them. The theory is actually simple and intuitive. Back in 2009 share price of Eicher Motor was around 240 & currently it’s trading above. Person A with Royal Enfield has just upgraded his bike to latest Thunderbird 500cc with additional payment. (1933) 30% drop in the market – Would mean the NYSE would close trading there and then for the day. However, the combined market cap of 65 billion USD is lesser than the market cap of TCS. Careers; Here are five more you (probably) didn’t know… 1. It should be obvious by now that this argument is very wrong indeed. This weird stock market indicator was actually said to be used by Federal Reserve chairman Alan Greenspan, who would look at the indicator to gain insight into manufacturing performance. Your email address will not be published. compares the cumulative falls in real GDP in the Eurozone and the US in Q3+Q4 The bailout total was $4.62 trillion. Click here for instructions on how to enable JavaScript in your browser. It was selling for less than 1 times earnings. In this article, we bring you the 14 most interesting and amazing facts about the stock market. Thus, the stock market is affected by irrational/behavioral factors which has nothing to do with the actual performance of the public company. The reference is a paper published this year (Bose, Subir and Ladley, Daniel and Li, Xin, The Role of Hormones in Financial Markets. This figure shows that As mentioned here (link), it was the fastest US bear market in history. This means that the recovery is expected to be stronger, but this recession is just very deep. Hiking equipment was trailing. 1. As you can see from the encircled peak on the right-hand-side of the graph, from its bottom on March 23, the SP500 gained app. but, basically, they have also recovered from the crisis. He still eats cup ramen for almost all of his meals. After the the reason being that we entered this recession with a more “balanced” economy The terms “Bear” and “Bull” are thought to be originated from the way of attacking by each animal, with the bull thrusting its horn up in the air, while a bear swiping downwards. A Bull Market in Banks and Other Weird Facts of the Stock Bounce Energy, financial, industrials up at least 20% since Tuesday Those three … While you might think that London is a huge stock exchange center, the truth is that Shanghai is number two. updated version of a graph that I have presented earlier. This prestigious nickname is reserved for companies that are nationally known and trade high on the stock market. The world stock market is enormous, with 60 stock market exchanges! ; 80% – the amount of capitalisation represented by … No, he hasn’t inherited anything. They used to call the middleman as bear jobbers and in short “bears” which is known to describe the downturn in the market. 1. it was the fastest bear market ever, as mentioned. Not FAANG either. Another study also revealed that market performed better when Sachin scored a century. Nevertheless, it pales compared to this recession. 2. If you would believe everything you read in social media, trading forums and financial news, you would be misled to believe that the majority of traders are rational, risk-minimizing, sophisticated and consistently profitable human beings. A 21-year-old Japanese stock day trader named Takashi Kotegawa turned $13,600 into $156 million over 8 years. A Bull Market in Banks and Other Weird Facts of the Stock Bounce Back to video Of course, take the starting point back a little ways, to the February top, and the same three groups fall straight to the bottom. 1. the rebound has been historically fast, too, and – in spite of the worst Company. Some of them are just not correct. A Bull Market in Banks and Other Weird Facts of the Stock Bounce. The oldest stock exchange in the world started in Antwerp, Belgium, in 1460. That’s what a stock market is. in 2008. Part I: Facts and wrong explanations. Instead, some argue, it is all due to FAANG (Facebook, Apple, Amazon, Netflix, and Alphabet’s Google). Its ever changing and getting complex day by day. Lou Pai is a former Enron executive who cashed in an estimated $270 million in stock and left the company before it collapsed, divorced his wife, married an exotic dancer, bought an enormous piece of Colorado, sold it and then disappeared into obscurity. Here is an Click here for instructions on how to enable JavaScript in your browser. It has taken a couple of months to recover this time around. Back Next. The stock market status can fluctuate at any given time, but here are some current statistics regarding the global stock market. recession ever – the stock market is currently back at pre-recession levels. And, in spite of this very strong recession, stocks are doing fine. Intraday Open High Low Strategy -Live Signals, Camarilla Pivot Points Excel Sheet: Live Signals. They put 30 cubes with the names of companies that are traded on stock exchange before a circus monkey. The most expensive stock in world is the Warren Buffet’s Hathaway, Class A, which is priced at USD 2,13,330 per share. About 10% of US households hold international equity. But just how big are we talking? Let us know in the comments section if you remember any more crazy facts about stock markets! Now, coming to Sachin Tendulkar, if he is involved in the losing match, the market goes down further (18% more compared to when he is not involved). Not fully, but significantly. January 1 level. People in the market have this superstition that whenever that gate is opened, the markets crash. The reason for such a high price is that the company doesn’t splits the shares. Key Statistics on Stock Markets – Editor’s Choice The United States represents 40.01% of the entire world stock market capitalization. (adsbygoogle = window.adsbygoogle || []).push({}); Stock Markets exist since more than a century and evolved a lot since its inception. National Stock Exchange (NSE) of India has around 1750 companies. This time Stock Market Facts 1 – The US Didn’t Start It All The US stock market is the biggest in the world. Here are 10 interesting stock market facts. This blog post explains why these stylized facts are so difficult to understand jointly. Nevertheless, the short-run loss this time around is just so much larger than Bombay Stock Exchange (BSE) in India has the highest number of listed companies in the world with an estimated 5689 companies. The New York Stock Exchange (NYSE) is massive. Interesting Stock Market Facts: If a person owns a stock in a company they own a part of that company. The NYSE is the largest stock exchange in the world by market cap . The fall in stock prices subsequent to loss is more than seven times the movement following a win by Indian Team. The pain was short-lived, though. As of 2018, the U.S. stock market represents 40% of the entire world stock market! It is true that the behavior of FAANG has been impressive and has driven a significant part of the SP500’s recovery, but this is not the whole story. Ten. It merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, and is now known as Euronext Amsterdam. On average, the market performs the poorest in September. One of the weirdest stocks you can buy right now is also one of the most controversial. The London Stock Exchange Group only trades $165 billion per month. A stock market, also known as share market or equity market, is the aggregation of buyers and sellers of shares or stocks which represents public or private ownership claims.. See the fact file below for more information on the stock market or alternatively, you can download our 20-page Stock Market worksheet pack to utilise within the classroom or home environment. A Bull Market in Banks and Other Weird Facts of the Stock Bounce. While the results haven’t been back-tested historically, in 2008 at the height of the recession , operating revenue of many cardboard box manufacturers averaged a 50% drop. In the following, we summarize the findings of 20 economic research journals about traders’ overconfidence, the effect of stop loss […] Knives were up sharply. Paper was stationary. The global market capitalization has exce… That is perplexing. Apparently, monkeys are more intelligent investors than humans. Nearly all countries participate in a global stock exchange that allows for both local and international companies to be traded. In my next post (that I will publish next week), I will offer my view on what has been going on. World and emerging markets are still a few percentages behind, Amazon's market cap crossed the $1T threshhold on Sep 4., 2018. Back in 2009 share price of Eicher Motor was around 240 & currently it’s trading above 19000. 1-5 Interesting Facts About Stocks and Shares. coaster. down by a staggering 15% during the first two quarters of 2020. Currently you have JavaScript disabled. On the other hand, if you claim that the fast fall and rise in markets was just a short-lived technical blip (perhaps due to funding squeezes and fear), then you face a challenge explaining why that technical blip should result in a loss to the tune of USD 20 trillion (link). Many men have tried to decode its working, tried predicting its unpredictable moods, gained a lot, and lost a … The 2008 stock market crash ranks as one of the most horrific in U.S. history The 2008 U.S. financial bailout cost more than the Marshall Plan, Louisiana Purchase, Race to the Moon, S&L bailout, Korean War, New Deal, Iraq War, Vietnam War, and NASA’s lifetime budget—combined. the stock market during this recession has been a like watching a roller In fact, we have seen continuous downgrades of the economic outlook. Eurozone real GDP dropped by five percent in autumn 2008. © 2021 Trading Tuitions. financial crisis of 2008, it took more than two years. contrast to normal recessions. Interesting Facts About the Stock Market - The stock is a fascinating place. In 2018, the global market cap shrank 14.9% from the year before. Historically, the middleman used to speculate on the future price of the bearskins by selling them which they yet had to receive from the tappers, with the expectation that the price will drop. Women do also outperform men at a professional level. True, small-cap stocks are still (early August) 12% below their January 1 level, but when small-cap stocks have rebounded spectacularly, too, it emphasizes that this is not all about all FAANG, even when FAANG stocks have done very well. So here were some lesser-known facts about the stock market, which only add to its intrigue and charm. In the US, The oldest stock exchange in the world is Amsterdam Stock Exchange, which was established in 1602 by Dutch East India Company dealing with the printed stocks and bonds. People interested in financial markets and the According to a study from HRF, a specialist hedge fund analyst, funds ran by women had much bigger returns than those ran by men (almost 60% vs less than 40%). I also review a couple of suggested, but wrong, explanations. The first occurred in 1929 with a 25 percent declined in the share prices and the next crash occurred in 1987 October when the stock market declined by one fourth! Markets also recovered after the 2008 financial crisis. If you continue to use this site we will assume that you are happy with it.