Goldman Sachs says nobody is trading, inactive trading environment is "abnormal".

G

Grandluxe

Goldman’s Cohn Says Inactive Trading Environment Is Abnormal
By Michael J. Moore May 28, 2014 11:20 AM GMT-0400

Goldman Sachs Group Inc. (GS) President Gary Cohn said low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market.

“The environment for all the firms is quite difficult right now,” Cohn, 53, said today at an investor conference in New York. “What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact.”

Citigroup Inc. Chief Financial Officer John Gerspach, 60, said yesterday that second-quarter trading revenue could fall as much as 25 percent from year-earlier levels, and JPMorgan Chase & Co. estimated a 20 percent drop earlier this month.

Low interest rates and the Federal Reserve’s program of quantitative easing have resulted in reduced volatility, Cohn said.

Goldman Sachs has responded to years of declining fixed-income trading revenue by cutting jobs and capital in the business, Cohn said, “We’re not just waiting for things to get better.

http://www.bloomberg.com/news/2014-...nactive-trading-environment-is-abnormal-.html

More job cuts on the trading desks...Oh well. What are you doing for summer?
 
Grandluxe said:
----Goldman Sachs Group Inc. (GS)....
----low volatility and interest rates....
----tight ranges....
----“abnormal” trading market.
----environment for all the firms is quite difficult right now....
----What drives activity in our business is volatility.
----clients really don’t need to transact.”
----revenue could fall as much as 25 percent....
----quantitative easing....
----cutting jobs and capital in the business....
----What are you doing for summer?
More...

We're gonna re-test the 2009 lows! :eek: :D :p :cool:
 
Volatility is now shockingly low across almost all asset classes. Vol. was low in 2004-2007 but not in all asset classes - commodities had very high volatility. Right now there is no asset classes moving at all.
Its month end and ES has a sub 5 point range for the day and CL has a sub 50 cent range.
Just goes to prove the only law of the market is "anything can happen". Price has no memory day to day. Its like almost like a pure random walk right now.
 
---Goldman Sachs says nobody is trading, inactive trading environment is "abnormal". ---

they are the ones ,who create it
 
Bob111 said:
---Goldman Sachs says nobody is trading, inactive trading environment is "abnormal". ---

they are the ones ,who create it
More...

+1

Didn't someone say years ago on ET, that the strip mining of the trading seas would lead to low volatility and low volume and that eventually even the whales would die?

BTW, I am still trading (and even made a new equity high this month ) but there is only so much I can do on my own.
 
Grandluxe said:
Goldman’s Cohn Says Inactive Trading Environment Is Abnormal
By Michael J. Moore May 28, 2014 11:20 AM GMT-0400

Goldman Sachs Group Inc. (GS) President Gary Cohn said low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market.

“The environment for all the firms is quite difficult right now,” Cohn, 53, said today at an investor conference in New York. “What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact.”

Citigroup Inc. Chief Financial Officer John Gerspach, 60, said yesterday that second-quarter trading revenue could fall as much as 25 percent from year-earlier levels, and JPMorgan Chase & Co. estimated a 20 percent drop earlier this month.

Low interest rates and the Federal Reserve’s program of quantitative easing have resulted in reduced volatility, Cohn said.

Goldman Sachs has responded to years of declining fixed-income trading revenue by cutting jobs and capital in the business, Cohn said, “We’re not just waiting for things to get better.

http://www.bloomberg.com/news/2014-...nactive-trading-environment-is-abnormal-.html

More job cuts on the trading desks...Oh well. What are you doing for summer?
More...

One idea that could help is to cut the salaries of the big corporate guns to more normal levels and stop the buying back of shares that some say funds their option programs.

"Low interest rates and the Federal Reserve’s program of quantitative easing have resulted in reduced volatility, Cohn said. "
Ironic isn't it. Some say this program was done simply to bail out a couple US banks from collapse. Now the banks are not happy with it. Didn't GS convert to a bank and get some money from TARP?
 
There is low volatility with the fed continuing to hold the federal funds rate at 0 to 1/4 %; However, when the markets decide interest rates are headed higher, the US dollar will rise, the stock market will head south, and the volatility will soar.
 
Whaaaaaa, poor Goldman Sachs. I guess they don't see the same trading environment that they did when they routinely bragged about never having a down day a few years back.
 
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