Andy Redleaf: Stock index futures only enabled destructive home day trading
Andy Redleaf · Andy Redleaf - Evolution of Markets (Capital Allocators, EP.46) · Apr 2, 2018 · at 17:36
Hedge fund manager Andy Redleaf analyzes the introduction of cash-settled stock index futures in 1982 and their impact on market behavior.
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“From an investment, from an, you know, investor point of view, there was absolutely no use for the product. It enabled pajama boys, you know, people to trade at home the market on a, you know, 10 minute, five minute, 10 minute hourly basis, which, you know, is something pretty much everybody at the micro level thinks that's a bad idea.”
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