The linkage between exchanges breaks down very quickly.
Algorithmic trading works well...until it doesn't.
High frequency and quant trading dominate US (and developed markets') activity in the
equity markets. Their trading has at a minimum, much more of a technical focus than
traditional, fundamentally oriented managers.
Liquidity driven markets, markets that detach from economic reality, always end
poorly. I am not saying this market overall is that kind of a market, but clearly it has
attracted a large number partcipants buying and selling stocks who are not driven by valuation.
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