I expect to see more volatility in future# Stock
o*y
1 楼
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.
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.
