Interim budget key for stock markets in near-term: experts
Get the Macro View newsletter Stock Market Outlook 2014: Is The Rally Over? Feb. 14, 2014 10:27 AM ET | Includes: SPY by: Andrew Dickow 2013 has come to an end and what a year it was. With that said, what an unpredictable year 2014 is shaping up to be as well.
Futures markets earlier today pointed to declines in financial markets for reasons that… Read More Futures markets earlier today pointed to declines in financial markets for reasons that were all about telling a story. Close Close Open Source: Bloomberg. Futures markets earlier today pointed to declines in financial markets for reasons that were all about telling a story. After a string of up days, most markets were showing red earlier today.
Chicago Fed Sees Risk From High-Speed Trading in Stock Market
Experts said on the macro front, market participants will closely watch the FY’15 fiscal deficit target, which will determine the size of market borrowing for the next fiscal. “Overall, the near-term trend is showing sell on rallies, and till Nifty closes decisively above 6,100, investors may book profit in rallies. In coming week, 6,100 shall be crucial deciding level in near-term, and the index is likely to witness further buying above this level,” said Rakesh Goyal, senior vice president of Bonanza Portfolio Ltd. Over the last week, the Sensex lost 9.74 points – the third straight weekly drop. Persistent capital outflows from foreign funds mainly affected the market sentiment.
Oddly, Stock Market Returns And GDP Per Capita Are Inversely Correlated
Jeff Sprecher, whose IntercontinentalExchange Group Inc. bought the New York Stock Exchange in November, this week called for a revamp in fee structures to simplify trading. Microsecond Trading High-speed firms that measure their trading in microseconds, or millionths of a second, or less have largely supplanted people as market makers during the past decade. This has alleviated institutional investors concerns that humans were front-running their orders, according to Clark.
Source: <a http://www.todayhotstocks.com/ href=’http://www.bloomberg.com/news/2014-02-14/chicago-fed-sees-risk-from-high-speed-trading-in-stock-market.html’ >http://www.bloomberg.com/news/2014-02-14/chicago-fed-sees-risk-from-high-speed-trading-in-stock-market.html
Stock Market Stories Lead Us Astray
There is extensive evidence that investors bid up the prices of growth assets, to the point that their long-run return is below the performance of distressed assets (sometimes referred to as value investments). Some observers regard this as mispricing, and contend that it offers opportunities for arbitrageurs. The strategy would be to buy equities in distressed markets and to short-sell securities in fast-growing markets. However, short-selling can be costly and risky, thereby allowing ‘hot’ markets to remain overpriced, and to yield disappointing long-run returns. Last, there is the question of luck.