I've written about this before, but I think it bears repeating.
The market and the environment in which investment decisions are made and investors interact has meaningfully changed over the past fifteen to twenty years or so.
The advent of new players (bank prop desks), new investment vehicles (hedge funds, SWFs, private equity), new investment instruments (ETFs, fixed income related derivatives), new quant strategies (HFT), increasing computing power, access to and the manipulation of voluminous mountains of financial data, and the willingness to use leverage, all combined with evolving academic support for momentum strategies has changed dramatically the nature and complexion of investment markets.
The best way I can think of to describe the market these days is either like a run and gun engagement, or as a game of chicken. Either way, it usually ends badly for someone.
I would also point out that these changes to and in markets, parallel in many ways some of the changes to our society and culture.
No comments:
Post a Comment