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Jason Weisberg of Seaport Securities breaks down why the average American can invest in a volatile market.
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The larger kind of and we did all the conversations you're right every conversation we have it's almost.
-- brings it all together because everybody's in the same boat to some extent one thing affects another thing and Jason Weisberg is with us now to talk more about that.
For Seaport Securities they'll be on the floor the New York Stock Exchange little bit later on you look tired Jason as we all do.
After what we cannot yet some -- -- if you grow back.
How much did they suspect if you look I'm 36 just I am.
This has been crazy -- -- like that's unbelievable you know -- the one nice -- if there's any.
You know positive points -- -- out of this.
2008 look like the end of the world this doesn't feel like that at all that's exactly what we've been and I have made it it's just you know -- -- -- volatility that we're not used to.
And it's kind of drawn -- flash crash.
The probably needs to be some changes made to market structure maybe decelerate some of these moves that we've seen.
I don't know if you -- necessarily warranted the volatility -- in the moves but I I think almost been very controlled and very different than than 2008.
And that's it certainly a good thing -- the psychology of the confidence of investors but a lot of reasons and I'm just curious.
What do we -- pinpoint as one of the biggest reasons for this kind of volatility because.
Again it goes back to the flash crash of say the leveraged exchange traded funds within these are funds that certainly hedge funds use.
-- individual investors have their money in these things as well.
I think the.
It's had to decelerate these moves these to the downside by instituting you know the breaks that shorting mechanism where you had to create a plus taken orders short stock.
But there are ways around that.
And it's not that sophisticated I think instituting the short -- or selling short on a positive sale after the previous sale.
Would certainly help slow things down to the point we -- see these violent down -- You know another reason that we see this kind of volatility.
Is that.
There's not -- a lot of long term buyers and sellers that have bids are offers in the various marketplaces so if you wanna move -- big cap stocks.
Let's say you want to -- five or 101000 shares of that stock.
Without bids and offers around you can move the stocks around pretty quickly if you trying to move that 5000 share result wants whereas when you had a central marketplace years ago.
Pre 2008.
It was a lot more difficult to do that you you know the world all the buyers and sellers really met one place.
You can't but the -- you know the toothpaste back in the -- but maybe -- -- -- we need to reexamine.
Its consolidation and all the venues to Begin trading today.
That's interesting because I was gonna ask is there anything more than can be done because -- systems such as it is the system that we have here.
Has to your earlier point worked fairly well this week that the declines have been I think -- use the word.
Orderly the only thing I can think off the top of my head as ExxonMobil was halted yesterday that's -- supposed to happen if there's a bad trade right -- of the system as it's set up as works.
Put it exactly right I mean you know with what we have now it it does work.
I just think that you know when you're sitting in the middle of America and you're looking at -- -- -- were up 500 you go get a cup of coffee cup backward down 300 yeah.
It's a little disconcerting but it's happening in an orderly fashion like you mentioned with the Exxon trade.
The systems are in place to take erroneous trades or really egregious prices because of the past that's the kind of thing that could throw us off exactly right and that's what happened during -- and -- They is not an at least is not a bank at least right here it's not a banking crisis is not a crisis.
Liquidity of the worlds not all are it's just -- our outlook on the -- well that's right as my father tells me on a daily basis when I complained to him.
-- says when you wake up tomorrow Jason.
There's a good chance to sun will rise again.
So the fact of the matter is it's not the end of the world's I will figure out what we love your dad and the equities are right about relative insider thank -- thanks -- thank don't know attire thank you very much.
