Data Assets & Alpha Group: Market Structure and the Decline in European Liquidity
Making Sense
00:00
What's the Cycle in the US Equity Market?
US markets have been outperforming, perhaps for economic or macro reasons. But as a result, passive funds such as trackers have ended up dominating in US markets. Retail investors wanted a piece of this outperformance and came on board. And then systematic market makers have also capitalized on all this liquidity. The result has been a highly liquid and broadly outperforming equity market in the US. Whereas in Europe, haven't we seen the opposite in that we've seen relative under performance? I'm sure this is overly simplistic, but is there some truth in here, Chris? Yes.
Transcript
Play full episode
