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Why This Week's Quant Catastrophe Did Not Lead To A Market Crash 

By: capt_nemo in POPE 5 | Recommend this post (1)
Sun, 15 Sep 19 2:28 AM | 20 view(s)
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Msg. 39992 of 62138
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While the broader market barely noticed, and in fact the S&P was up 1% on the week, quant funds and style-trading hedge funds suffered one of their worst weeks in history as every single popular trade suddenly collapsed, while all the unpopular, formerly money-losing trades ripped in traders' faces as a 6-sigma rotation into Value from Momentum/Low Vol that began at the end of August accelerated this week. For those who missed it, since Monday, "Momentum" sold off more than 10% while much-maligned "Value" trades ripped 7% higher, as the most crowded trades imploded, precisely the event we warned about just a few weeks ago in "Crowding Is Now One Of The Biggest Market Risks".


http://www.zerohedge.com/markets/why-weeks-quant-catastrophe-did-not-lead-market-crash?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29


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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.


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