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This Simple Measure Suggests Investors Are The Least Myopic They’ve Been In 20 Years
A week ago, Donald Trump decided it was a good idea to throw the weight of his Twitter account behind the push to do away with quarterly earnings reports, ostensibly in the the interest of discouraging myopia both on the part of shareholders and corporate management teams.
Simply put, that's a bad idea. The solution to the problem of short-sightedness on the part of investors and management isn't to reduce transparency by moving to a semi-annual reporting regime.
Rather, the solution is recond
I think you have a point there: Being long term in passive investment vehicles is fine as long as the market remains docile and one is not seriously challenged in one’s belief. For a conventional stock a retail investor can easily attain a reasonable amount of confidence in its long term value. Retail investors holding a fancy ETF that in turn is holding derivatives are naturally less confident about what they’re invested in. And in a case like XIV, this is absolutely logical, but it may also apply to less exotic ETFs.
I wonder if the shrinkage in traded volumes is due also to the development of the CFD market. According to Bloomberg the worldwide value of daily trading in CFD is 75bn. This makes almost 19 Trn a year.