F40 trade ideas
Current euphoria based on higher risk premium ... Patrick Artus affirms that European Markets should maybe be priced 25% higher from current levels based on a 3% risk premium differential.
US markets are mostly inflated by share buybacks because this is how the stockholders are remunerated, whereas in France for instance, dividends are on the order of 3.5%.
MIF2: Fixing - High volume anomaly and manipulable dry market This is actually a concern. 41% of daily volumes take place toward the last 5 minutes of the trading day. This dries up liquidity and create weird patterns during the day. Price discovery is less efficient in many cases in my opinion. Algos follow last minute execution. Costs are supposedly reduced thanks to some tweaks but this probably leads to some imbalance in the markets.
This game should cease when the situation si reversed.
Document by the AMF (French "SEC") about this matter in French:
www.amf-france.org