When attempting to explain and understand why markets sell off, it becomes apparent that, although easily observed and explained after the event, market sell-offs are almost impossible to predict.
Didier Sornette (Why Stock Markets Crash) echoes this when he writes that bubbles do not burst because of the significance of a single event, but rather because market participants have become “irrationally exuberant” and, as such, market conditions have developed unsustainably. When the bubble finally
- Banks rethink fund-linked trades ahead of FRTB
- Fund-linked structured products face extinction under FRTB
- People moves: Barclays’ investment bank chief exits, Citi president to retire, Vos promoted at BNY Mellon, and more
- Banks grapple with social media risk
- China Minsheng and SocGen team up for quant index product