Violent Reflexivity: Why Market Movements Are More Aggressive Than Ever, Feat. Corey Hoffstein

<p><span style="font-weight: 400;">Corey Hoffstein is the founder and Chief Investment Officer of Newfound Research LLC, a quantitative research and investment fund. He is also the host of the “</span><a href= "https://blog.thinknewfound.com/podcast/"><span style= "font-weight: 400;">Flirting with Models</span></a><span style= "font-weight: 400;">” podcast. </span></p> <p><span style="font-weight: 400;">His most recent research is</span> <a href= "https://blog.thinknewfound.com/2020/09/liquidity-cascades-the-coordinated-risk-of-uncoordinated-market-participants/"> <span style="font-weight: 400;">“Liquidity Cascades: The Coordinated Risk of Uncoordinated Market Participants.” </span></a></p> <p><span style="font-weight: 400;">In it, he examines three popular narratives about what is driving radical swings in markets, including:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The increased role of the Fed</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The rise of passive and index investing</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The growth of volatility-correlated strategies </span></li> </ul> <p><span style="font-weight: 400;">He finds that, individually, none could explain the radical market shifts we’ve seen. However, when combined, they create a market incentive loop that is causing markets to move and react to exogenous shocks more quickly and aggressively than ever before. </span></p> <p><span style="font-weight: 400;">Find our guest online:</span></p> <p><span style="font-weight: 400;">Twitter:</span> <a href= "https://twitter.com/choffstein"><span style= "font-weight: 400;">@choffstein </span></a></p> <p><span style="font-weight: 400;">Website:</span> <a href= "https://www.thinknewfound.com/"><span style= "font-weight: 400;">Newfound Research</span></a></p>