Obsession with short term getting out of hand
IT MUST undoubtedly be frustrating to adherents of the "buy and hold" school of investing to observe that, as markets evolve, the end product is a progressive shortening of investment horizons.
Stock prices, for instance, react almost daily to the innumerable economic and earnings announcements out of China and the US, while Wall Street gyrates every six weeks to the pronouncements of the Federal Open Market Committee (FOMC).
Exchanges, in the meantime, having supposedly evolved to the stage where they are commercially driven (as if this were a desirable goal in the first place), are eager to upgrade their trading systems so as to facilitate high-frequency trading (HFT) - a technological innovation believed to boost liquidity and enhance profits because it allows for a large number of lightning-fast trades within a minute fraction of a second.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
AIA launches wealth centre targeting high-net-worth clients
Samba, Gazelle shoes help drive Adidas sales while North America lags
Bank of Japan upbeat on consumption, service price outlook
Brokers’ take: KGI initiates Winking Studios with ‘outperform’, S$0.34 target price
Delayed rate cuts expected to benefit Singapore banks’ otherwise uneventful Q1 earnings
Fast-fashion giant Shein wants to sell skincare, toothpaste and toys, too