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How long does the average share holding last?

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    How long does the average share holding last?

    Investors are advised to invest for the long-term, yet in the US the average share holding lasts just 22 seconds.

    The consensus suggest that investors dabbling shares should be in it for the long-term, yet the average holding is less than a minute thanks to computer driven 'high frequency' trading.

    Michael Hudson, a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund recently said: "Take any stock in the United States. The average time in which you hold a stock is – it's gone up from 20 seconds to 22 seconds in the last year.

    "Most trades are computerised. Most trades are short-term. The average foreign currency investment lasts – it's up now to 30 seconds, up from 28 seconds last month. The financial sector is short term, yet they talk as if they're long term."

    Computerised high-frequency trading, which makes up about 70pc of all trades, is the subject of the book, The Fear Index, published late last year.

    In it the main character Dr Alex Hoffman, invents an algorithmic supercomputer that uses artificial intelligence to analyse every nuance of the stock market. The hedge fund he sets up using the system makes billion-dollar profits for its clients – until something starts to go wrong.

    Source: How long does the average share holding last? Just 22 seconds - Telegraph

    So there you have it - free market has turned into computer driven spekulative tulip: perhaps it's time for compulsory 60 minutes delay between trades and 110% tax on capital gains made from less than 2-3 years of holding assets.

    My personal shareholding record is over 20 years and still going strong

    #2
    Is that because you bought shares in some local Russian potato farm and haven't been back to see if the share value is worth selling?
    The proud owner of 125 Xeno Geek Points

    Comment


      #3
      Originally posted by chef View Post
      Is that because you bought shares in some local Russian potato farm and haven't been back to see if the share value is worth selling?
      Gazprom.

      Comment


        #4
        One word: Long-Term Capital Management

        Comment


          #5
          Originally posted by AtW View Post
          The consensus suggest that investors dabbling shares should be in it for the long-term, yet the average holding is less than a minute
          Actually, the consensus in the West is that the investors have a right to life, liberty and the pursuit of happiness, and therefore are free to hold their shares for whatever time they choose.

          Comment


            #6
            Originally posted by hugebrain View Post
            Actually, the consensus in the West is that the investors have a right to life, liberty and the pursuit of happiness, and therefore are free to hold their shares for whatever time they choose.
            So you think it's ok for "shareholders" to hold shares for 22 seconds?

            Until very recently (thanks to Brown) CGT on short term holding was 40% and those who held business assets like shares for over 2 years had their CGT rightfully reduced to 10%.

            Whatever or whoever puts money into shares for 22 seconds are NOT investors - they should not even be in the market in the first place.

            Comment


              #7
              Originally posted by AtW View Post
              perhaps it's time for compulsory 60 minutes delay between trades and 110% tax on capital gains made from less than 2-3 years of holding assets.
              Good old AtW. The answer to everything is a law enforcing what he would like to see.

              You can take the boy from Russia.....
              Job motivation: how the powerful steal from the stupid.

              Comment


                #8
                Sigh

                You need to realise that there are two sides to the market.

                1. There is the point that companies issue shares to the market to raise cash. Initial Public Offerings (IPOs)

                2. There is the secondary market where those shares can be played with.

                The primary market is the important bit. The secondary market can do what it likes, so long as people still think it is worthwhile playing in it because that supports the primary market.

                If the secondary market becomes not worth playing then the primary market is finished, at which point there will be no new capital for business.

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                  #9
                  Originally posted by AtW View Post
                  So you think it's ok for "shareholders" to hold shares for 22 seconds?

                  .
                  23 seconds gets my vote before the Stasi are called in. Or should it be erm 30 seconds? a day? 10 days?, 30 days?
                  Let us not forget EU open doors immigration benefits IT contractors more than anyone

                  Comment


                    #10
                    Originally posted by AtW View Post
                    So you think it's ok for "shareholders" to hold shares for 22 seconds?

                    Until very recently (thanks to Brown) CGT on short term holding was 40% and those who held business assets like shares for over 2 years had their CGT rightfully reduced to 10%.

                    Whatever or whoever puts money into shares for 22 seconds are NOT investors - they should not even be in the market in the first place.
                    It's a market. Those who get involved in it do so of their own free will. Who are you to tell them that they should not?

                    Your OP:
                    Investors are advised to invest for the long-term, yet in the US the average share holding lasts just 22 seconds.

                    The consensus suggest that investors dabbling shares should be in it for the long-term, yet the average holding is less than a minute thanks to computer driven 'high frequency' trading.
                    So when you find out that your "are advised" and "consensus" doesn't describe the real world, your answer is to force the real world to fit?
                    Job motivation: how the powerful steal from the stupid.

                    Comment

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