Inelastic Market Hypothesis Explains Market Volatility

What will cause the next stock market crash? Well, the answer is you! The Inelastic Market Hypothesis explains the volatility in the stock market, also explains why stock market crashes are usually so sharp and fast. Plus, you might not believe it, but YOU are the reason behind stock market crashes as households, with their flows, drive the market.Q3 2020 hedge fund letters, conferences and moreThe Inelastic Market Hypothesis, developed by professor Gabaix and Kooijen, from Harvard and Booth respectively, shows how 30% of stock market fluctuations can be explained by flows. This confirms the t…

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HEDGE accordingly