- Current interest rate is still low compared to history rates, which means that the price of money is low, causing the excess amount of cash in the market.
- Literally there is no better place to speculate than the financial market. As long as the rate is low, one has enough motivation to try to speculate from the market’s fluctuations. Short-term Up or Down is up to those big whales’ choices, especially when there is no shocking news. If Putin throws a nuclear bomb tomorrow, this would affect the market much, but nothing would happen if Putin pushes forward again a little bit.
- Most people’s understanding is much based on an assumption that market is efficient itself as taught in every econ class, but IMO it’s a rational casino, half-half efficient. As there is space for speculation, there would be people wiping out puts, and then again, calls.
- You wouldnt see analysts screaming about the possible risk, its their job to say everything is fine. Also, most individual investors’ standpoint is not based on some theoretical analysis or sound econ knowledge. Bulls yell to bears that “priced in&&forward looking” as the market rallies, while bears yell “look at the risks!” during plunge. No difference here.
- Position disclosure: i am speculating. I dont care if the market rallies or plunges. My only advice to everyone: dont blame the market since no one is aiming at you with a rifle to buy or sell, and be responsible for your own choice as an adult.
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