Volatility in the Market
Anyone here care to explain why the whole market drops ~1.5% to revert the next day
Airlines drop 4% to rise the next day 8% (AAL)
And many others like this, supposedly due to delta variant. People fled to bonds.
So what now you buy bonds on Tuesday and sell them on Wednesday?
Is the Delta Variant no longer a worry after 1 day?
I think this is a sign that there’s too much money in the market and too many people invested in it.
I’ve noticed some hedge funds rotating their portfolios to value stocks and I think this might be the reason there’s sharp drops recently.
This high volatility may mean that retail investors value more their rapid gains than the company they are buying which might be a reason there’s sudden moves in many stocks and after earnings and even before earnings the stock drops
via r/wallstreetbets https://ift.tt/3qhG8Zq
July 21, 2021 at 01:54AM