Duke of Marmalade
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We have heard about the Black St Pat's day bank holiday when the shares in some banks plummetted.
In a very high profile intervention the FR claimed that this was as a result of malice. Following that statement there was a big rebound in the shares.
Well, lo and behold, those same bank shares are more or less back at Black Pat Monday levels.
I'm all for the FR rooting out malicious manipulation, but there is a strong suspicion that it was more interested in restoring confidence at any cost. If I had bought shares on the FR induced rebound I would be feeling pretty sore now.
It is not for the FR to interfere in stockmarket psychology. It should conduct its investigations in a manner which is not primarily motivated to manage market psychology. How many times in the past have we been told that speculative runs on currencies or shares have been maliciously managed only to find that the underlying realities eventually vindicated the speculation despite the King Canute attempts of the authorities to resist them.
In a very high profile intervention the FR claimed that this was as a result of malice. Following that statement there was a big rebound in the shares.
Well, lo and behold, those same bank shares are more or less back at Black Pat Monday levels.
I'm all for the FR rooting out malicious manipulation, but there is a strong suspicion that it was more interested in restoring confidence at any cost. If I had bought shares on the FR induced rebound I would be feeling pretty sore now.
It is not for the FR to interfere in stockmarket psychology. It should conduct its investigations in a manner which is not primarily motivated to manage market psychology. How many times in the past have we been told that speculative runs on currencies or shares have been maliciously managed only to find that the underlying realities eventually vindicated the speculation despite the King Canute attempts of the authorities to resist them.