Concentration risk and Trend: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Added link)
 
imported>Doug Williamson
(Expand for bubbles, crashes and rational expectations.)
 
Line 1: Line 1:
1. ''Bank funding''.
Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).


In bank funding, concentration risk arises when funding is sourced from too small a number of depositors, or an insufficiently diverse range of market instruments or sectors.
Extended trends lead to bubbles and crashes.


Also known as ''funding concentration risk''.


 
== See also ==
2.
* [[Adaptive expectations]]
 
* [[Bubble]]
Exposure to losses from holding too narrow a range of investment assets, particularly exposure to credit losses.
* [[Correction]]
 
* [[Crash]]
 
* [[Efficient market hypothsis]]
==See also==
* [[Mean reversion]]
*[[Concentration]]
* [[Overshooting]]
* [[Credit concentration risk]]
* [[Random walk]]
*[[Funding risk]]
* [[Rational expectations]]
*[[Herfindahl index]]
* [[Trend analysis]]
*[[Monopoly]]
*[[Cash concentration]]
*[[Concentrate]]

Revision as of 09:09, 2 May 2018

Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).

Extended trends lead to bubbles and crashes.


See also