Re:A Profitable and Legal Way to Game the Stock Market
by exelius on Tuesday July 07, 2015 @03:19PM
(#9847508)
Right, but that's the fund manager's problem, not mine. A savvy fund manager would run a front running fund as part of its portfolio.
Also note this is only a problem when the market is mid-term upward or flat. The chances of this type of front running backfiring are pretty high in a bear market. Also, like all forms of arbitrage, there is an upper bound on the number of shares you can do this with before you're dumping more shares on the market than the index funds need. Granted that's probably a big number, but it's not infinite.
Also note this is only a problem when the market is mid-term upward or flat. The chances of this type of front running backfiring are pretty high in a bear market. Also, like all forms of arbitrage, there is an upper bound on the number of shares you can do this with before you're dumping more shares on the market than the index funds need. Granted that's probably a big number, but it's not infinite.