Markets S&P 500 stocks

‘It Doesn’t Matter Until It Does’: An Update On Liquidity In U.S. Equity Futures

One of the disconcerting things about markets in 2018 is the proliferation of "this doesn't matter until it does" stories. 

One of the disconcerting things about markets in 2018 is the proliferation of "this doesn't matter until it does" stories. 
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1 comment on “‘It Doesn’t Matter Until It Does’: An Update On Liquidity In U.S. Equity Futures

  1. A lack of liquidity worked well on the upside for longs and now presents challenges on the downside. The amazing moves in many tech names from Mar to Sept were amplified imo due to a lack of sellers (liquidity) while the large drawdown shows the flipside to this lack of liquidity. Were fundamentals so great as to justify 50%+ moves up in a few months then 20%+ down in a month? This lack of liquidity creates opportunity for those smart enough and with a time horizon. The danger is this issue bleeds into the real economy causing more economic volatility (reflexivity). One needs to be aware that this impacts prices in both directions and should be used to an investors advantage.

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