Forum Topics Asx Small cap liquidity
AlphaAngle
2 years ago

I've been investing for close to 7 years now and it feels like the liquidity at the small end of town is as bad as it has ever been during that time. Anyone have any data to confirm of refute this feeling?

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Rapstar
2 years ago

Link here


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AlphaAngle
2 years ago

Thanks @Rapstar the spreads on many nanocaps are sitting at 20-30% which I haven't seen that much of outside of panics. Feels like a good time to patiently accumulate peoples shares who need to out but who knows.

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Timocracy
2 years ago

I'll be honest, I didn't read that post right the first time. Thought to myself, "wow, that's a fair what of money to be throwing around every day" (either interpreted in the movement of your holdings or as cash deployed).

Follow-up question, are stocks 1-7 with that trading value matched roughly with your weighting? I mean to say is stock 1 the largest holding and the rest follow in suit?

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Rapstar
2 years ago

Net liquidity is likely to deteriorate over the next 1-2 months, as QT continues, and Yellen sells more treasuries onto the market.

Christmas rallies are a thing in bull markets - not so right now.....

Next week is a big week, with US November CPI and FOMC meeting. On CPI numbers, you rarely get consecutive good numbers during periods of high inflation - it could be the trigger to send the market to Hades. I am waiting until after the FOMC meeting to make any further moves.

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