Flash crash shows the true value of value investors

Clime Investment Management

Clime Investment Management

The recent flash crash in US markets showed value fund managers are now the only thing preventing total market chaos. You might remember the infamous ‘flash crash’ back in 2010. Well it happened again recently on Monday August 25. The S&P500 crashed more than five per cent in the first minutes of trading after computer and high-frequency-traders (HFT) triggered a sharp sell off. A battle between human logic and computer driven manipulation occurred and it was repeated across the world, including in Australia. The real thing that stabilised the market in the first 15 minutes was the true investors in the market. But in the world today true investors are becoming scarcer. We therefore need to be careful about saying that long-only value fund managers don’t add value or that their fees are excessive. It is they who create real buying support in times of chaos and they are a line of defence against market manipulation. Read the full report: (VIEW LINK)


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Clime Investment Management

The Clime Group is a respected and independent Australian Financial Services Company, which seeks to deliver excellent service and strong risk-adjusted total returns, closely aligned with the objectives of our clients.

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