Current Events,  Mile High View

Flash Crash

A Flash Crash can be described as a quick drop and recovery in stock or security prices. Over the years, numerous companies have witnessed shared views of plunges and spikes. “Flash crashes will occur and it will happen again,” said Todd Schoenberger, managing director at LandColt Capital. “If you are a retail investor, you’re always going to look at the market with a cautious eye because you’re going to be nervous over whether Wall Street has your best interests in mind.”

Three years ago, in 20 breathtaking minutes, the stock market saw the DOW Jones Industrial Average lose nearly 1,000 points, only to rebound just as quickly. “You have 60 percent of America invested in the market either directly or through 401(k) or pension plans. That means six out of every 10 are vulnerable to a flash crash, and the only way to reduce or eliminate that risk is just not to be invested at all,” Schoenberger said. “And that’s not an option, either.”

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