The rise of ETF trading has increased market correlation. According to Bespoke Investment Group of Harrison, New York, the market is on pace for 42 days when at least 80 percent of S&P 500 stocks move in the same direction, which would be second only to the 52 days in 2008.Is this correlation or causation?
Thursday, July 29, 2010
Increase in ETF Trading = Increase in Correlation??
I saw this article in Reuters today and was somewhat surprised by this comment:
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