WSJ’s Larry Light asks Personal Finance columnist, Jason Zweig about the volatility in the market. As Zweig explains, record levels of fluctuations this year have shown more volatility than the previous 10 years combined.
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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November 9th, 2008 at 1:58 pm
It’s just nonsense what he tells about “Deutsche Börse”. We have extreme volatility here as well. The german vdax reached 85 last week. Volkswagen – chiefly due to a short squeeze – has a one-month-volatility of 450! “Volatility interruptions” may help against erroneous trades, but definitely not against overall market volatility.