o**y
发帖数: 3065 | 1 As we can see, recently the moves of equities are extremely volatile, which
is rarely seen in the past, except in 2008. One reason is that more and more
investors are leveraged, and taking more risk. Once the price moves towards
one direction too much, many people receive margin calls, and then cause
more severe movement towards that direction.
The reason why people nowadays are easier and easier to be leveraged is that
FED printed a lot of money to support the equities. Since I expect there
will be QEn, the excess liquidity in equities should be more and more.
Therefore, the volatility will be more and more wild in the future. I expect
to see such 800-1000 point movement in a single day not terribly uncommon
next year. | k********8
发帖数: 7948 | 2 u see high volatility because there is no market here.
real market needs small volatility, extremely trending and position building | c*****r
发帖数: 8227 | 3 HFT count 60-75% trades these days. | o**y
发帖数: 3065 | 4 HFT will not necessarily cause huge volatility, it only increases the
frequency of price movement. Volatility is related to volume/day, not
necessarily trades/day.
【在 c*****r 的大作中提到】
: HFT count 60-75% trades these days.
| o**y
发帖数: 3065 | 5 Only gold is in the real market according to your theory.
But I disagree, the amount of money goes to gold is much much smaller than
it goes to equities right now. Therefore, equity market is still the biggest
market at present. As QEn's coming, equity market will even expand more,
althought the real intrisic value doesn't change, or even decrease.
building
【在 k********8 的大作中提到】
: u see high volatility because there is no market here.
: real market needs small volatility, extremely trending and position building
| k********8
发帖数: 7948 | 6 we wanna see commited money, not day in day out money
biggest
【在 o**y 的大作中提到】
: Only gold is in the real market according to your theory.
: But I disagree, the amount of money goes to gold is much much smaller than
: it goes to equities right now. Therefore, equity market is still the biggest
: market at present. As QEn's coming, equity market will even expand more,
: althought the real intrisic value doesn't change, or even decrease.
:
: building
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