Posted on 01/15/2015 9:11:30 AM PST by blam
Linette Lopez
January 15, 2015
The story on Wall Street this earnings season is a classic case of, "be careful what you wish for; you just might get it."
Since Wednesday, when Wall Street started reporting its earnings for the last quarter of 2014, we have seen an across-the-board beatdown on trading revenues.
•A 23% drop in bond trading (from the same time last year) contributed to JP Morgan's earnings miss.
•Citigroup's trading revenue fell by 14% overall, and bond trading fell 16% from this time last year.
•And sales and trading revenue at Bank of America fell 20% from the same time last year.
Obviously losing money is a bad thing on Wall Street, and everyone's chalking this bad thing up to a surprising jolt of volatility toward the end of the year.
And this is where the lesson comes in. The thing is, this summer traders were begging for volatility. A market without volatility is like an old ship getting caught in the doldrums — a sea without wind.
(snip)
(Excerpt) Read more at businessinsider.com ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.