Sunday, January 2, 2011

Michael Hudson: Average Stock Held for 22 Seconds and Average Foreign Currency Position Held for 30 Seconds


Michael Hudson is a highly-regarded economist. He is a Distinguished Research Professor at the University of Missouri, Kansas City, who has advised the U.S., Canadian, Mexican and Latvian governments as well as the United Nations Institute for Training and Research. He is a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund.

Yesterday, Hudson said:

Take any stock in the United States. The average time in which you hold a stock is--it's gone up from 20 seconds to 22 seconds in the last year. Most trades are computerized. Most trades are short-term. The average foreign currency investment lasts--it's up now to 30 seconds, up from 28 seconds last month.

See also this and this.

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2 comments:

  1. Don't have oneJanuary 3, 2011 at 6:46 AM

    So presumably people are making and losing money on this, so what's the deciding factor - who has the fastest computer?

    ReplyDelete
  2. safarimanJanuary 3, 2011 at 5:10 PM

    Must be the investment bankers. I don't understand it, clearly its not fundamentally driven! They must have an edge that's plucking feathers somewhere!

    ReplyDelete

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