- "We can see that investors (in a broad sense: institutional investors, banks, funds, non-residents) almost systematically buy assets in the United States and Europe when the prices of these assets are abnormally high, but not when they are abnormally low. This holds for currencies (especially the dollar), equities, bonds, etc."
- "It is well known that this is explained by herd behaviour, VaR and capital constraints, short-term horizons, competition between investors and monetary policies. However, this is extremely destabilising and, curiously, the crisis has not put an end to this behaviour."
Natixis Flash Economics 460 20100915
- "It is well known that this is explained by herd behaviour, VaR and capital constraints, short-term horizons, competition between investors and monetary policies. However, this is extremely destabilising and, curiously, the crisis has not put an end to this behaviour."
No comments:
Post a Comment