TPS Posted August 30, 2011 Posted August 30, 2011 I can agree that volatility can play in the psyche of the average investor, but believe it or not, the more action in the market, the less volatility there is. I know sounds crazy right? but it's true. Liquidity is a good thing, until there's too much... You really think that futures prices are less volatile now? I'm sure I can find a nice little paper that has done the sigma calculations...
ieatcrayonz Posted August 30, 2011 Posted August 30, 2011 Liquidity is a good thing, until there's too much... That is Ennifer's motto. It is amazing how much one topic morphs into another.
Magox Posted August 30, 2011 Posted August 30, 2011 Liquidity is a good thing, until there's too much... You really think that futures prices are less volatile now? I'm sure I can find a nice little paper that has done the sigma calculations... actually all you have to do is look back at volumes in the oil markets when it was above $120 a barrel and you will see that relatively speaking volumes were remarkably low. The lower the volumes the more volatile the markets. All you have to do is look back and you'll see.
TPS Posted August 30, 2011 Posted August 30, 2011 That is Ennifer's motto. It is amazing how much one topic morphs into another. Especially when we're talking beer...
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