2017 on pace as least volatile year on record

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Slothmeister
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Joined: Sun Sep 10, 2017 11:48 am

2017 on pace as least volatile year on record

Post by Slothmeister » Tue Oct 17, 2017 12:33 pm

October is the month with the highest share of daily moves of 1 percent or more in either direction, but not this year. At least not yet.

https://www.bloomberg.com/news/articles ... arket-calm

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Pajamas
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Re: 2017 on pace as least volatile year on record

Post by Pajamas » Tue Oct 17, 2017 7:19 pm

The calm before the storm! :shock:

boglerdude
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Re: 2017 on pace as least volatile year on record

Post by boglerdude » Tue Oct 17, 2017 9:34 pm

Does speculative activity stabilize the market (shorts, short squeezes, puts, etc)

ie people just betting against each other, disconnected from fundamentals

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Portfolio7
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Re: 2017 on pace as least volatile year on record

Post by Portfolio7 » Tue Oct 17, 2017 10:20 pm

I wonder if this is a result of trading algorithms providing liquidity and valuing the markets in similar fashion.... plus the steady flow of 401K $ into stocks and bonds via autopilot tending towards stability as well. I don't know enough to say yes or no, but it seams like a reasonable supposition to me.
An investment in knowledge pays the best interest.

Slothmeister
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Re: 2017 on pace as least volatile year on record

Post by Slothmeister » Wed Oct 18, 2017 6:51 am

Portfolio7 wrote:
Tue Oct 17, 2017 10:20 pm
I wonder if this is a result of trading algorithms providing liquidity and valuing the markets in similar fashion.... plus the steady flow of 401K $ into stocks and bonds via autopilot tending towards stability as well. I don't know enough to say yes or no, but it seams like a reasonable supposition to me.
I think automated trading algorithms might be the main reason for the lack of volatility. It removes the human element which would help stabilize trading. What will become of the trading market if volatility disappears? Could automated algorithms cause a new form of crises that no one is aware of?

Accrual
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Location: Durham, NC.

Re: 2017 on pace as least volatile year on record

Post by Accrual » Wed Oct 18, 2017 7:40 am

I worry that earnings have been driven by increasing consumer debt. Are we really increasing wealth?

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