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.
Allerede abonnent ? Logg på
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.
Allerede abonnent? Logg på
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.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
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.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
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.
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.
