Market Structure Insights
April 10, 2019
JP Morgan’s global head of macro quant and derivatives research (if you have that title, you should be a big deal!), Marko Kolanovic, says the market’s rising propensity toward violent moves up and down reflects bad liquidity. Bad Liquidity would be a great name for...
April 3, 2019
As the Dow Jones Industrials surged over 300 points on April Fools Day, the behavior driving it was Exchange Traded Funds, not rational thought reacting to economic data. But aren’t ETFs manifestations of rational thought? Investors see, say, good Chinese manufacturing data, and pump money...
March 27, 2019
In fourteen years, we’ve not missed an Activist. “Chest-thumping, Quast?” you say. No, a market structure lesson, a way for investor-relations professionals to be valuable. Activism has become the de jour Value Investment proposition for modern markets. Our data indicate 10% of all US stocks...
March 20, 2019
Is less more? This is the question anyone looking at the stock market as a barometer for rational thought – from stock-pickers to investor-relations professionals – should be asking. A Wall Street Journal article yesterday, “Passive Investing Gains Even in Turbulent Times,” notes that $203...
March 13, 2019
It’s all about the Benjamins, baby. What I mean is, Forex (FX) is the world’s most active trading market, with some $5 trillion daily in currencies changing hands on a decentralized global data network. It can teach us how to think about the effects of...
March 6, 2019
Did Exchange Traded Funds drive the recent market rollercoaster? The supply of ETF shares moved opposite the market. The S&P 500 fell about 16% in December and rose around 19% from Dec 24 to March 5. In December, says the Investment Company Institute, US ETFs...