"Totally bizarre" Stock prices leave the traders Scratch heads
(Bloomberg) – As a turbulent December stock market draws, there is one thing that trades and investors can agree on: these are not regular times, especially for this time of year.
It's "totally bizarre," says Stephen Innes, Asia Pacific's trading manager at Oanda Corp. "It's amazing just how harmful markets are leaping when emotions slip." Chip shares Valuations have declined in December sales, but mostly he keeps his money on the sidelines, like many other traders in Asia, he has seen in the distance events played in the United States, amazed at what he sees. [1[ads1]9659004] The S & P 500 index has posted its biggest upward reversal since 2010 on Thursday, one day after the meter was, in turn, the biggest progress since 2009. Despite the two-day gain, the measure is still down to nearly 10 percent in December I alone. "I'm on the golf course," says Innes on how he answers. "As I have been most of the week."
Mark Matthews, head of the Asia survey at Bank Julius Baer & Co. in Singapore, says two "golden r egler "has been broken. Only since December 1945 has December produced the highest average gain in a month, he says, but this month is set to be the worst year. Second, since the 1970s, S & P 500 has never declined as revenue growth was more than 10 percent, he says. But as a single investor, Matthews plans to tear it out. "I remain invested through good times and bad," he says. "Not investing, in the long run, is like betting against the house in a casino."
In Sydney, Sean Fenton cuts his head. "It's absolutely unusual for this time of the year," says the portfolio manager at Tribeca Investment Partners about the market moves. Fenton, like Matthews, says he's looking for the US economy to be robust and sales are slowing down. "Probably a bit more focused on the market," he says, but that doesn't mean he has reasons for the movement. "Attempting to explain short-term movements in the markets is an exercise in invalidity, because it is usually quite random," he says.
In Tokyo, Hajime Sakai only keeps away from trading. Sheffield manager at Mito Securities Co admits it all took him surprised. "I can't really say I've handled it," he says. "I wasn't quite able to answer." It is partly due to the time delay between when he makes a trade decision and when the trade is carried out, which is often a day or two later. In markets this choppy, that gap makes trading almost impossible. "We are increasingly facing situations where the price is completely different at the place of execution, as opposed to when we made the decision," he says.
Hold Cash
"We have never seen the US market drop in this size and speed in the last eight to nine years," said Margaret Yang, market analyst at CMC Markets in Singapore. Yang's solution is to go overweight today. She expects volatility to continue until the turn of the year, until investors get a clearer picture from the holiday income season, but in the longer term, she does not know if this will prove to be a "healthy correction", since investors find the S & P 500's low valuations attractive and earnings. Coming over expectations, or whether it will mark the end of 10-year-old beef, anyway, one thing is certain: "The last move is definitely unusual," she says.
In South Korea, Lee Dong-Jun agrees. The global investment team at DB Asset Management in Seoul has also been as clear of the market as possible this week, and tends only to existing investments and stay away from new trades. " not normal, "he says about the market turbulence. "Investor sentiment is very bad." And while "we don't think this type of big volatility will continue," he says, "our thinking is that it's not a good idea to actively trade stocks in a market like this." [19659011] To contact journalists on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net; My Jeong Lee in Tokyo at mlee754@bloomberg.net; Matthew Burgess in Sydney at mburgess46@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Tom Redmond
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