STREET DOGS
Three answers to a big question
Michel Pireu: What issue in the world of finance isn’t getting enough attention?
From Peter Lazaroff, three answers to the question: What issue in the world of finance isn’t getting enough attention? Probably the effect that investor preference is having on the way the market behaves. We forget that markets are driven by the way investors are taking action in large numbers and by the strategies and vehicles they use to gain exposure. A lot of the action over the past eight years can be explained by the mass exodus to passive strategies, index products and fee-based advisers. Dip-buying and rebalancing are now a religion, which has undoubtedly changed the way stocks react to negative news and the duration-severity of volatility bouts – Joshua Brown.
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