A trading paradox is a situation in which the behavior of market participants or the market itself contradicts established market theory or conventional wisdom. One example of a trading paradox is the “Efficient Market Hypothesis” (EMH) which states that financial markets are always perfectly efficient and that it is impossible to consistently achieve higher returns than the overall market. However, there are traders and investors who are able to consistently achieve higher returns than the overall market, which contradicts the EMH. Another example is the “Paradox of Thrift” which states that saving more in a recession can lead to a decrease in economic activity and worsen the recession.
Archives of “January 17, 2023” dayrss
The euro fell and European stocks gained further (though later gave much of it back) on an ‘ECB sources’ report suggesting that after 50 bps in Feb, the ECB will slow to 25 bps.
- Stoxx 600 +0.3%
- German Dax +0.3%
- France’s CAC +0.4%
- UK’s FTSE 100 -0.2%
- Spain’s Ibex +0.1%
- Italy’s FTSE MIB +0.2%
It’s been one of the strongest ever starts to a year for European stocks and the FTSE 100 continues to flirt with an all-time high. Portfolio managers have been buying Europe on relative valuation.
- China re-opening expected to encourage oil demand this year
- Expects Chinese appetite to raise oil demand by 0.5 mil bpd
- Demand from China, India could compensate for drop from developed countries
There are still mixed views on the oil market as of late but price has recovered well after the start of the year scare, with WTI crude now hovering back close to $80.