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Is the trend towards buy and hold passive index investing reducing market volatility?

Yes
2 (67%)
No
1 (33%)
Maybe
No votes
 
Total votes: 3
 
yportne
Topic Author
Posts: 4
Joined: July 16th, 2017, 11:53 pm

Volatility Asymmetry

November 26th, 2017, 3:28 am

Earlier this year I wrote a paper entitled 'The Passive Put' where I argued that the trend towards passive index buy and hold strategies would effectively reduce overall market volatility and give rise to a trend towards 'semi-variance' in equity price movements. In other words if this buy and hold strategy is taken to an extreme and the majority only buy and the number of sellers tends towards zero what does the model look like?