Never before have US equity markets been so accessible – or so crowded. Twenty years ago, around 4 billion shares were traded daily across US stock markets. Today, it’s over 15 billion. Yet long-term investment managers like Orbis, Baillie Gifford, and Dodge & Cox account for only a fraction of that activity, and their share is shrinking.
The surge in trading activity and the influx of new participants have made markets more complex and unpredictable. Stock prices now react sharply, even to seemingly minor news. Pinpointing the drivers of short-term price movements has never been easy, and today it’s harder than ever.
The total value of US stocks traded in 2024 reached $50 trillion, more than double the 2014 figure. But this explosion in trading volume isn’t being driven by long-term investment managers. So who is behind it? And what does it mean for those who still invest with a long-term lens?… to view the full article, please click here.
