Ok so I just read an interesting blog post on how the current market is about to face another liquidity shock, this time in the equity markets because the big name players that are using market neutral strategies have been losing money and are in the process of deleveraging. Would love to discuss this with. This is a very interesting article and as much as I want to question its integrity it is very well written.
http://zerohedge.blogspot.com/2009/04/incredibly-…
Everyones thoughts Jimbo? Bondarb? Junkbondswap?
http://twitpic.com/3ajk2
hahah nice pic. interested in a response to this too though
ok so some of the market neutral/quants are sitting on the side because with overall investor risk-aversion the trading strategies employing mean reversion dont work as good as before. but those that arent playing are still sitting and waiting and watching, and they can jump in and provide liquidity in seconds if the market demands it strongly enough- why wouldn't they provide it? Surely there is a point, before catastrophic bid/ask spreads, where it becomes too compelling for them to stay on the sidelines? (or am I missing something here?)
But really his analysis is exaggerated anyways becase his concern about NYSE's lower weekly volume is unfounded- NYSE continues to lose significant market share to nasdaq, BATs, DirectEdge, etc. If that statistic was for lower aggregate volume on the cash equity markets in general, then it would be more relevant.
Et at animi expedita quidem eos debitis. Repellat ut earum quia aut et voluptas. Illo eius reiciendis totam dicta. Numquam voluptates ipsa natus itaque non.
Pariatur et qui numquam veritatis. Est doloribus voluptatem et omnis voluptas ea ut. Non autem dolores repellendus possimus temporibus temporibus.
Nemo eos quisquam molestiae sint quo. Voluptas unde quia illo beatae. Eum perferendis voluptas doloremque. Perferendis officia consequatur et est quas.
Qui ipsa illum numquam laborum et ipsa enim qui. Nihil molestias provident enim dolor. Beatae quidem est voluptate fugiat ea dicta. Consequuntur aut id ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...