Steve Sosnick, Interactive Brokers’ chief strategist, discusses liquidity concerns in the current market.
Given the recent activity, risk management tools are something most investors are looking at more than usual.
Photo Credit: G. Starke via Flickr Creative Commons
The latest research suggests a high chance of QE3 already priced into the market — one reason to think stocks might not rally hard on an announcement.
If banks don’t start easing up on house loans, the recovery could be tepid.
Stocks continued to ride the hopeful sentiment of a ceasefire at the start of last week, with all three averages advancing. The S&P 500 has recouped all its losses since the start of the war.
The cooler-than-expected CPI report initially pushed equities higher after the news, but once implied volatility reset, the rally fizzled, and choppy price action took over.
