Violent Reflexivity: Why Market Movements Are More Aggressive Than Ever, Feat. Corey Hoffstein

Corey Hoffstein is the founder and Chief Investment Officer of Newfound Research LLC, a quantitative research and investment fund. He is also the host of the “Flirting with Models” podcast. 
His most recent research is “Liquidity Cascades: The Coordinated Risk of Uncoordinated Market Participants.” 
In it, he examines three popular narratives about what is driving radical swings in markets, including:
The increased role of the Fed
The rise of passive and index investing
The growth of volatility-correlated strategies 
He finds that, individually, none could explain the radical market shifts we’ve seen. However, when combined, they create a market incentive loop that is causing markets to move and react to exogenous shocks more quickly and aggressively than ever before. 
Find our guest online:
Twitter: @choffstein 
Website: Newfound Research

Corey Hoffstein is the founder and Chief Investment Officer of Newfound Research LLC, a quantitative research and investment fund. He is also the host of the “Flirting with Models” podcast. 

His most recent research is “Liquidity Cascades: The Coordinated Risk of Uncoordinated Market Participants.” 

In it, he examines three popular narratives about what is driving radical swings in markets, including:

The increased role of the Fed The rise of passive and index investing The growth of volatility-correlated strategies 

He finds that, individually, none could explain the radical market shifts we’ve seen. However, when combined, they create a market incentive loop that is causing markets to move and react to exogenous shocks more quickly and aggressively than ever before. 

Find our guest online:

Twitter: @choffstein 

Website: Newfound Research