April 27, 2017

Stock market topping process

Stock market topping is a process and usually takes a while. The last 3 or 4 months we may be in an important stock market top. Doug Kass thinks that one may be wise to shorten your investing time frame as a strategy.

Kass also criticizes the Algo and Quant traders even though it benefits traders like himself,
"The lack of consistency and trend suggests to me that machines, algos, price trending strategies and ETFs (rebalancing late in the day) form the basis of exaggerated intraday moves. The role of risk parity and volatility trending strategies is chopping up experienced traders and leading a number of high profile hedge hoggers to close down. This provides an ideal setting for us "littler guys," opportunistic traders who unemotionally buy weakness and sell strength."