I don't think, and didn't mean to imply that liquidity automatically begets volatility. Nope. Instead, my premise was based upon the rushing in of a second class of investor/trader, the retail constituency.
Lemme tell you - I personally would never, ever buy stock in the CME, NYSE, Nasdaq, or any ECN. The very quick valuation equation in my mind says that a stock or futures exchange should trade at something like 75% of the average multiple of a securities broker, for a number of reasons. Among them, the limited potential revenue streams, the high degree of direct regulation, and the number of existing and potential competitors waiting in the wings.
So from that point of view, on top of my previous "plays," let me add another. A pure and simple short sale of
newly-minted, former stock exchange, publically traded stock :)
What do you think?
LPS5 |
