{"id":57288,"date":"2017-03-31T08:40:54","date_gmt":"2017-03-31T12:40:54","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=57288"},"modified":"2017-03-31T08:40:54","modified_gmt":"2017-03-31T12:40:54","slug":"rend-following-portfolio-insurance-and-market-selling-pressure","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2017\/rend-following-portfolio-insurance-and-market-selling-pressure.html","title":{"rendered":"rend-following, Portfolio Insurance, and Market Selling Pressure"},"content":{"rendered":"<p>(Harvest) A recent FT article, &#8220;Rise in the new form of &#8216;portfolio insurance&#8217; sparks fear &#8211; Popularity of trend-following funds &#8211; and their promises &#8211; carry echoes for some of 1987 crash &#8221; focused on the threat of trend-following to create selling pressure on equity markets. This speculative topic has been a recurring theme for decades and has been extensively researched. The empirical question is very straight forward. Do futures prices lead cash prices and are futures prices driven by systematic trend-followers? That is, is there a positive feedback loop whereby the selling of equity futures by some strategies will lead to more selling and a price crash? The research on the impact of speculators has generally shown that this is not an issue. <\/p>\n<p><a href=\"https:\/\/www.hvst.com\/posts\/88711-trend-following-portfolio-insurance-and-market-selling-pressure\">To read this article:<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Harvest) A recent FT article, &#8220;Rise in the new form of &#8216;portfolio insurance&#8217; sparks fear &#8211; Popularity of trend-following funds &#8211; and their promises &#8211; carry echoes for some of 1987 crash &#8221; focused on the threat of trend-following to [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-57288","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/57288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=57288"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/57288\/revisions"}],"predecessor-version":[{"id":57289,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/57288\/revisions\/57289"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=57288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=57288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=57288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}