Seeking Alpha

295278's  Instablog

295278
Send Message
I manage a family office and invest globally across all major asset classes on the long and short side.
  • Is A Repeat Of 1987 Coming? 0 comments
    May 12, 2013 3:18 PM

    Stocks are heavily overbought, traders are levered like never before and the market is dominated by ultra short term algo traders. On top of that, everybody thinks the stockmarket is due for a correction, but nobody believes it will be bad, because the Fed is having their back, hence nobody bothers buying insurance.

    The flash crash in 2010 was a taste of how fast the market can go down, once the algos take over and liquidity dries up in minutes.

    The market collapse in 2011 has confirmed again how quickly the market can drop, with an even bigger overall correction.

    All that is needed is a trigger. It is everybody's guess what that will be...Bernanke announcing his retirement maybe?

    It is all about confidence, isn't it?

    Right now confidence in the Fed is as high as it can be...

Back To 295278's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • RAX is providing a utility type service, which is easily reproduced, hence open to strong competition and very capital intensive...PEG 1.45?
    Feb 7, 2011
More »

Latest Comments


Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.