Short-term, in-and-out, frenzied trading by the pros is what aggravates financial meltdowns. It is the segment of Wall Street that I always avoid in good times. Imagine what can happen in dangerous markets.
This is precisely what aggravated the 2008/2009 market sell-off, aided and abetted with mark-to-market and short-selling. True, erratic markets create opportunities for professional traders, particularly those I call inside players. But not the vast majority of investors. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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