Credit will save stock bulls in next ‘flash crash’
Commentary: Strong credit market is good for equities
By Jon Markman, MarketWatch
SEATTLE (MarketWatch) — An unintended, unexpected, unprecedented crisis of liquidity among high-frequency traders on May 6, 2010 undercut the deepest roots of stock investors' confidence in the fair operation of markets — a condition that persists to this day.
Yet markets have barreled forward. High-beta stocks are up 35% since the “flash crash” despite the mistrust, while the old boys of the Dow Jones Industrial Average DJIA -1.10% have gained 18%. Why?
