LFS Virus: Stock market crashes
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LFS Virus: Stock market crashes
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We tell about record-breaking declines of the Dow Jones index and the stability of gold.

Many of you are familiar with "broken bubble" and stock market crash concepts. They all mean the same thing — the Dow Jones Industrial Average Index crash. This aggravates tension between nations and countries, as well causes panic due to a threat of the financial havoc.

What Is the Dow Jones Index?

First of all, Dow Jones —  is a stock market average price index that evaluates stock rate of the largest American companies. It is published for more than two centuries, showing changes in stock price value. This indicator reflects the true state of the U.S. economy. Listed companies’ ranking is changing followed up by stock market trends.

As of today, the ranking includes the 30 largest companies, such as:

American Express, Apple Inc., Boeing Co., Coca-Cola Co., Nike, Microsoft and many others.

Line graph of the Dow Jones Industrial Average Index change:

What are the reasons behind the Dow Jones Index crash?

Reasons are very different. Predicting the next crash is nearly impossible. Even the world’s wealthiest financiers lose billions of dollars in one day.

For example, the so-called Black Monday occurred on the 19th of October 1987. Stock market crash occurred because of Iranian missile attacks in the Persian Gulf. The Dow Jones index dropped by 22,6%. Depositors lost 500 billion dollars.

Top 5 Biggest Crashes in History

Date of the Dow Jones

index crash

Decline (%)

                                  Reason

    October 19, 1987

22,6% Iranian missile attacks in the Persian Gulf

 

    October 27, 1997

 

18% The Asian Financial Crisis

 

    September 29, 2008

 

6,98% The World’s Financial Crisis

 

    August 8, 2011

 

5,55% Downgrade of the U.S. credit-rating

 

    February 5, 2018

 

4,6% US Federal Reserve's (FED) tightening Monetary Policy

This year's "Black Monday" happened on February 5. Nobody expected an intense overnight crash. Experts point out never in history has the stock market crash been so rapid.

What are the consequences of the crash?

Crashes, as a rule, tend to lead to material losses and bankruptcy.

As a result of the index drop, banks and corporations are losing trillions of US dollars, the large-scale destruction of financial institutions happens. People are deprived of housing, pensions and savings. Considerable losses occur in the world's markets , credit lines get closed and panic sets in.

All of this underlines the devastating consequences of the LFS virus - the Lack of Financial Security.

The LFS virus is underpinned by the the fear index.

What is the fear index?

Stock market crashes usually lead to "the fear index" (VIX - Volatility Index) rise. This indicator reflects the level of concerns that stock market trading participants have and helps to see the extent of the panic.

If the fear index is 15, it represents the optimistic outlook of the market. At the time of the crash it can soar to high levels. People get terrified, fearing of going broke and losing it all.

The fear index determines the lack of Financial Security.

During the February stock market crash in 2018, the fear index has risen up to 126%.

What can protect your assets?

In order to understand how to act and capture the moment, knowledge and hard work are required.

Only stability and clear understanding of what will happen tomorrow can protect you from the Lack of Financial Security virus.

History repeats itself, crises abruptly absorb companies and corporations. Any decline is the consequence of the LFS virus. Dollar loses its value, tension grows. Nobody in the whole world knows what will happen tomorrow. In times of uncertainty, gold becomes a safe asset for businessmen. By purchasing gold, you can be sure that investments will pay off.

In 1999, one share of Dow Jones could be bought for 45 ounces of gold.

Now you can get 18 ounces of gold per share.

It is evident that the index lost its positions, going down by 30%.

Here is the yield curve of the Dow Jones index gold to silver ratio:

Throughout the crisis, gold maintained its value. Over the last decade, the price of precious metals increased by 350%. Prices rose from $300 dollars per ounce to $1350 and above.

Leading world powers gradually accumulate gold reserves. In January 2018, gold reserves of the American gold stock funds increased by 27,6 tons.

European stock exchanges have enhanced the fund of the yellow metal by 7,6 tons. In Russia alone, 57 new gold deposits were discovered in 2017. In the year 2018, the country is planning to increase gold reserves up to 175 tons of gold.

GOLD IS THE MAIN SOURCE OF FINANCIAL SECURITY

NOT ONLY FOR GOVERNMENTS, BUT FOR EVERYONE.

Each of you can save and boost your golden capital together with Global InterGold.

LEARN MORE ABOUT FINANCIAL SECURITY

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Published: 13.02.2018
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Вполне согласна
Feb 15
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EUNICE OLUWATOYIN AKINDELE
EUNICE OLUWATOYIN AKINDELE
GOLD INVESTMENT IS GOOD, am saving , just need help to come on board the Global Inter Gold.
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Comienza tu reserva con expertos!
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