Stocks get wobbly start to new month after volatile January
Al JazeeraJUL 2022
US stocks have been over-sold, and then over-corrected. Investors are now sitting on piles of cash that they'll pour back into equities, paving the way for a "violent" rally in the coming months.
The rise of ETFs has fundamentally altered equity markets. Greater ETF ownership means lower overall liquidity; when there's less free capital to absorb losses, volitility rises as we saw in January. These structural changes are here to stay, as is greater volitility.