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Monday, July 12, 2010

The commodization of stocks

WSJ
In recent weeks, stocks in the Standard & Poor's 500-stock index have shown an increasing tendency to move in the same direction at the same time. Last week, those stocks' tendency to move in the same direction as the index hit an extreme not seen since October 1987, according to research by investment group Birinyi Associates in Westport, Conn.

The market's flock-like behavior is one more reflection of the growing influence of investors using broad-based strategies to buy and sell large blocks of stocks. Instead of picking individual stocks to hold over a period of time, they trade in and out of the market using broad indexes.

3 comments :

Anonymous said...

do you have any udpate on MGOL?

Anonymous said...

Is this the end of wall st manna?

Anonymous said...

Is this the end of wall st...... manna