/biz/ - Business & Finance

>epstein flgiht logs will be released in thenext xoming days
you guys. The swan even is here. They will crash it all with no survivors to disract the public from the flight logs.

>>57091625
>Portfolio insurance is a hedging technique which seeks to manage risk and limit losses by buying and selling financial instruments (for example, stocks or futures) in reaction to changes in market price rather than changes in market fundamentals.

>they buy when the market is rising, and sell as the market falls, without regard for any fundamental information about why the market is rising or falling.

>it is an example of an "informationless trade" that has the potential to create a market-destabilizing feedback loop..the report of the Chicago Mercantile Exchange found the influence of "other investors—mutual funds, broker-dealers, and individual shareholders—was thus three to five times greater than that of the portfolio insurers" during the crash

>The potential for computer-generated feedback loops that these hedges created has been discussed as a factor compounding the severity of the crash, but not as an initial trigger.

>a volatile and uncertain market, investors worldwide were inferring information from changes in stock prices and communication with other investors in a self-reinforcing contagion of fear. This pattern of basing trading decisions on market psychology is often referred to as one form of "noise trading", which occurs when ill-informed investors "[trade] on noise as if it were news"

significant amount of trading takes place based on information which is unquantifiable and potentially irrelevant, such as unsubstantiated rumors or a "gut feeling".[117] Investors vary between seemingly rational and irrational behaviors as they "struggle to find their way between the give and take, between risk and return, one moment engaging in cool calculation and the next yielding to emotional impulses".[118] If noise is misinterpreted as meaningful news, then the reactions of risk-averse traders and arbitrageurs will bias the market, preventing it from establishing prices that accurately reflect the fundamental state of the underlying stocks