During this boom period, automated investing became popular, with some investors preferring to perform their transactions online, rather than through a traditional stock broker. According to the latest statistics from the Investment Association, multi-asset funds have been proving popular, with the mixed investment 20-60% shares and mixed investment 40-85% shares sectors the second and fourth most popular respectively in December.
Randy Frederick, vice president of trading and derivatives for Charles Schwab, told ABC News the fall had been expected after markets hit record highs. Wage growth numbers in the US shocked investors, who for the first time in a long time saw signs of a pickup in inflation.
'A strong 2017 rally extending into January, low volatility, low interest rates, over-optimism and complacency, over-leverage and financial engineering, all coming to a head as investors react to the possibility of higher/faster interest rates with bond yields creeping higher to jeopardise the current market situation'.
Pospicil said this is a reminder that markets are volatile.
Overnight, world markets followed the United States' lead and dropped.
European markets were lower, but not as much as Asia. Stocks are down. Bonds haven't been doing well. The worst came on so-called Black Monday, Oct. 19, 1987, when the drop represented 22.61 percent of the market.
Is this the worst decline ever?
The Dow had a more than 1,100-point difference between its high and low on Tuesday. The computers can make the trades faster and more frequently than human traders can.
On Monday, Jerome Powell was sworn in as the Federal Reserve Chairman, replacing Janet Yellen. That's the equivalent of a 5,300-point decline today.
"Today's Dow -4.6% plunge is large and concerning".
The Dow Jones lost 4.6 percent of its value Monday.
I keep hearing the term "circuit breaker".
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