This from office hours with Dr. Doug Hirschhorn. The summer markets are generally slow because investors take vacation when their kids are out of school. Also, investors are risk averse after last year’s poor returns, so if they have gains this year, they don’t want to give them back. There is still a lot of uncertainty about what the government is going to do, markets don’t like uncertainty and so, take vacation. And the risk reward profile is worse when liquidity is lower.
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