Thursday, September 20, 2012

Avoiding Further Severe Financial Meltdowns


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 selloff, 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.)

No comments:

Post a Comment