Thanks to all who took the time to vote on http://hedgecapital.wordpress.com/category/polls/.
The poll is still ongoing and it is surprising that most readers are still long and strong amidst this volatile market (71% as at August 28). Kudos for not being afflicted by doom and gloom from the media.
There’s an interesting article on how the madness of Wall Street had affected the market participants.
Key takeaways:
Most clients felt that the bipolar market volatility was illogical and took a vacation instead. Doing nothing may be the best panacea in the short term.
"Liquidity black hole,” a term coined when all the selling pressure rendered stocks deprived of oxygen plunge, particularly on Aug. 8, 2011.
Capital raising hopes from publicly listed companies, particularly biotech or clean energy sectors, would be dashed if investors shy away from stocks.
ETFs have a growing appeal to money managers to hedge the volatility.
The domino effects of "liquidity black hole” may be spread from the U.S. to other stock markets, such as the same buying and selling signals generated from algo trading by quant hedge funds at the beginning of the financial crisis, August 2007, which suffered heavy losses. Also the flash crash experience.
Retail investors flock to bonds in lieu of stocks, despite the low yield of the former due to the torrid experience of the 2008 crash.
The article also noted retail investors’ bad timing. The average investors tend not to be vested for enough long periods to reap the benefits of buy and hold strategy.
Full article can be assessed here, Insight: The madness of Wall Street
The poll is still ongoing and it is surprising that most readers are still long and strong amidst this volatile market (71% as at August 28). Kudos for not being afflicted by doom and gloom from the media.
There’s an interesting article on how the madness of Wall Street had affected the market participants.
Key takeaways:
Most clients felt that the bipolar market volatility was illogical and took a vacation instead. Doing nothing may be the best panacea in the short term.
"Liquidity black hole,” a term coined when all the selling pressure rendered stocks deprived of oxygen plunge, particularly on Aug. 8, 2011.
Capital raising hopes from publicly listed companies, particularly biotech or clean energy sectors, would be dashed if investors shy away from stocks.
ETFs have a growing appeal to money managers to hedge the volatility.
The domino effects of "liquidity black hole” may be spread from the U.S. to other stock markets, such as the same buying and selling signals generated from algo trading by quant hedge funds at the beginning of the financial crisis, August 2007, which suffered heavy losses. Also the flash crash experience.
Retail investors flock to bonds in lieu of stocks, despite the low yield of the former due to the torrid experience of the 2008 crash.
The article also noted retail investors’ bad timing. The average investors tend not to be vested for enough long periods to reap the benefits of buy and hold strategy.
Full article can be assessed here, Insight: The madness of Wall Street
