Saturday, May 8, 2010

Stock Market Lemmings

I would like to repeat that the recent stock market retreat was caused by computerized trading on stock prices which caused a lemming effect without the lemmings and not on economic fundamentals which are more supportive of the market than at anytime over the last two years. The bottom line is that long term market performance will be driven by market fundamentals and not by the computerized algorithms that attempt reduce market risk but instead instill fear in investors which adds to market volatility. The market has always been about greed and fear and the current computerized trading systems amplifies both. There needs to be aggresive action by the SEC to deal with this problem or it will continue to hinder the market's recovery.

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