Showing posts from August, 2021

Record breaking crash in Hang Seng history

  Record breaking crash in Hang Seng history As the mainstream news are focused on the groundbreaking Tokyo Olympics records set by the best athletes in the world, the financial news are focused on the fastest crash in Hang Seng history, which exceeded the records set by the S&P 500 crash last year. As financial markets are increasingly driven by algorithmic trading by institutional investors, I think the trend of rapid and harrowing losses is starting to be an expected trend and not a <6 sigma event> popularized by conventional quant finance. A lot of the narrative in social media / forums seems to be to avoid the Chinese market at all costs and there is lot of retail selling among the paper hands, which prompted me to deep dive throughout the weekend to discern the noise from the facts. Between the choice of averaging up on the most expensive market reaching its All time High in US history VS buying into the crash in the All time Low in HK history, the choice is apparent to