I discuss how the changing nature of market participants and their strategies have transformed stock exchanges into more like gambling halls than investment arenas. The data shows the average holding period for stocks on the New York Stock Exchange is now only around five months, indicating an extremely high turnover rate. This volatility in the timing of buying and selling is a concern and can lead to market collapse, as a short average holding period is a cause of trading surges that precede crises in the securities markets.
WhatsApp 0014702062832
Leave a comment