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JPMorgan‘s quant guru,Marko Kolanovic– a man whose opinion is valued so highly that it can move markets – doesn’t think investors have learned their lesson from the meltdown that rocked stocks in early February.
That’s because they have become used to a low-volatility environment – one that hasn’t been conditioned to withstand sharp fluctuations. As a result, outsize price swings can hamper liquidity, making it difficult for markets to function properly when it’s most crucial, says Kolanovic, JPMorgan’s global head of quantitative and derivatives strategy.
If this dynamic still isn’t clicking for you, Kolanovic offers a handy analogy, comparing market liquidity to Uber. Here’s our story.
In other news, Larry Fink, CEO of $US6.3 trillion manager BlackRock, said financial firms have “done most investors poorly” – and laid out his ideal scenario for the next 10 years.
Elsewhere in finance news, Point72’s head of HR is leaving, following the firm’s former president out the door.
In markets news, the stock market’s most important driver has already peaked – but Bank of America offered five reasons why you shouldn’t panic.
And a top Wall Street strategist pinpointed the reasons why tech is going to become a stock market underdog.
Speaking of tech, there’s a bunch of news to get through. Here goes:
- One thing was missing from Mark Zuckerberg’s big speech – and it signals a major shift for Facebook
- Tinder owner Match Group just got Amazon’d by Facebook
- From your brainwaves to your internet: here is all the tech that Facebook plans to dominate in 10 years
- Apple pops after beating Wall Street expectations – and it plans to buy back $US100 billion in stock
- Tim Cook says Apple’s iPhone X sales were a Super Bowl victory – even if you wanted the team to win by “a few more points”
- Apple just fuelled everyone’s biggest fear about how companies will use their extra tax-reform cash
- Snap crashes to a record low after its earnings disaster
- Analyst flames Snap as “a poorly structured company that is demonstrating a clear pattern of mismanagement” – and suggests its problems run way deeper than the redesign
- Snap’s decision to launch a new version of Spectacles looks even more dubious after its disastrous earnings report
- Spotify is climbing ahead of earnings
- Wall Street’s betting Spotify can turn the rest of the world Swedish
- Cisco sheds a costly mistake, as it sells off a $US5 billion acquisition for $US1 billion
- This woman quit Google to found an AI startup – now she’s getting acquired by Cisco for $US270 million
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