Implications of a market that is shaken, not stirred
Gold prices show that investors are increasingly worried about the future, while S&P 500 performance implies that some are quietly taking profits
THE explosive meeting between Ukraine’s President Volodymyr Zelensky and US President Donald Trump confirms that the global environment is being shaken rather than stirred. The difference is important.
A market that is stirred is agitated within its existing parameters. It may be stirred by unexpected inflation figures, by employment changes or other well-known market-moving data points. A stirred market offers well-known opportunities and strategies to take advantage of it.
A shaken market is a different beast because it implies that the environment is changing. An example is the sudden “Big Bang” deregulation of UK financial markets in 1986 that shook the foundations of the market. The decade-long abolition of open-outcry market trading in the US also shook market foundations and enabled new approaches such as high-frequency trading, which rests on the efficiency of electronic transactions done in fractions of a second.
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