“Our analysis suggests” notes the latest Flows & Liquidity report from JP Morgan “that both CTAs and Risk Parity funds have been at the core of the recent correction.”
Since the beginning of last week, when the Dow Jones Industrial Average printed its most significant ever one-day point decline, analysts across Wall Street have been speculating as to what was the reason for the fall.
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Most have been pointing fingers at algorithm-based trading strategies as the main culprit behind the ceiling, and the report from JP Morgan seems to support this conclusion.
JP Morgan analysis is based on asset flow trends seen over the past few weeks. Notably, the “almost universal collapse of...
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