Originally Posted by
Lizard
Though taking a whole-of-market point of view, it isn't possible for everyone to be getting in and out. Surely, over time, this behaviour contributes to more volatility, with moves becoming ever more dramatic and self-fulfilling until it becomes too fast to trade and reversal occurs (i.e. buy falls, sell rises)... although, perhaps more likely that it just reaches the point where large majority just put sharemarket in the too-hard basket and end up with lack of liquidity, wide spreads and barely a pulse?
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