Friday, August 28, 2015

Volatility is what is expected now

With high speed traders, algorythmic traders, and  index fund traders, it is difficult on a day to day basis to determine who is running the U.S. stock market now.  Once upon a time one could look at the moves by the big brokers, the big investment funds, and individual activity in general and determine, while not an outcome, a possible direction.  For now that seems increasing difficult, if not impossible.  Volatility is now the lifeblood of the market, and for retail shareholders in general that is not good news.  It can bring back memories of '08/'09.


Anonymous kf said...

To the contrary, retail shareholders have a big advantage now. In this strangely then liquid, then illiquid market, retail can buy their 1000 shares at any time efficiently but institutional traders cannot possibly buy their one million shares unnoticed. Retail is in a great position to buy or sell. You are right that retail is in no position to have some great insights about this market, but it seems to me that even big institutions and certainly pension funds are in the same boat.

5:40 PM  

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