Winds of change blowing through the markets
Finweek English|4 March 2021
New developments may radically change the way markets have been running up to now.
Maarten Mittner
Winds of change blowing through the markets

Despite reaching new highs, traditional equity markets have been forced to take notice of new developments, centred in the US, that threaten to fundamentally change the ways markets have been operating up to now.

Suddenly, new players, such as retail brokers – essentially day traders – and market makers, acting as social media trading strategists, have come to the fore, making banks and asset managers nervous as to their sudden impact.

Trading on an app through Robinhood has favoured small upstart retail players who have upset established hedge-fund players, leading to losses of over $5bn for Wall Street hedge funds at one point. Retail brokers and market makers have become the new middlemen in the US, earning billions in fees amid greater market liquidity.

The onslaught of these upstarts on behalf of struggling gaming outlet GameStop ultimately failed, but it clearly showed that new forces in the market could disrupt established patterns.

For decades, hedge funds have had it all their own way, ruling the roost on the Dow, S&P 500 and Nasdaq, and playing the role of final arbiter on the prospects of companies. Short selling is the favourite way for hedge funds to trade.

Denne historien er fra 4 March 2021-utgaven av Finweek English.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra 4 March 2021-utgaven av Finweek English.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA FINWEEK ENGLISHSe alt
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021