Game Over? What do you think?
I have CNBC on wall- to-wall and there are two developments that are sub-themes there. I think both are real sleepers.
1. Retail investors are out of the markets. They took at least two beatings in the last decade and the flash-crash was the coup-de-gras. So only the pros are playing.
2. 70% of volume traded (on the equity markets) is "high-frequency" [split-second arbitrage] trading. -CNBC, October 11, 2010, 06:20:10
FWIW, the arbitrage traders don't lose, not even for a day. I think that spells the end of the markets as we know them. The ultimate wise-guys have created max entropy and game over.
What do you think?