Behind the Pavolian market response to China

Steve Sosnick, Interactive Brokers’ chief strategist, discusses the Chinese market sell-off and the investment climate for “buying-the-dip”, which has become a Pavlovian response.

This is a learned reflex that has worked spectacularly well for the past year and a half.

There is of course a risk to operating reflexively in a field that demands intellect, though.

This video post first appeared on July 29 on the Traders’ Insight blog.

Photo Credit: Boris Kasimov via Flickr Creative Commons


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