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Will The Modern Market ‘Virtuous Cycle’ Resume In January?
Remember the post-December FOMC vol shock and correlation spike?
If not, don't fret. That was two w
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An interesting interaction between mechanical releveraging and humans trying to guess at the imminent future.
Smarter traders than I should be (or are?) putting their money and effort into building models to predict and front run the volatility-driven models rather than wasting their time trying to forecast revenue and earnings going forward.
And to think … that stuff mattered once. A Long time ago when dragons and unicorns roamed the earth alongside dinosaurs and neanderthals.
I sometimes wonder if ETFs (and the trading of them) aggrevates non-fundamental driven flows – but then, speculators will always be willing to chase tulips until, … but agree mechanical flows of the fastest traders in the world are today’s trading zen – glad I’m not a trader – too old, slow.