Op-Ed: Coronavirus is restricting market efficiency — We need a two-week trading holiday

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CNBC's Julianna Tatelbaum argues why it's time that stock markets were shut for two weeks to allow the business community to adjust to the new reality brought on by the coronavirus.

Traders work before the closing bell at the New York Stock Exchange on Aug. 14, 2019 in New York City.Last week was marked by a series of trading halts as stock markets swung from "limit down" to "limit up," and the Dow Jones Industrial Average posted its worst single-day loss since Black Monday in 1987. Uncertainty abounds, but one thing is for sure - no one knows what is going to happen next.

So far, things are going smoothly. Jim Casey, co-head of global investment banking at J.P. Morgan, told CNBC that clients cannot even detect the difference between sales people and traders who are working from the bank's headquarters versus their back-up sites. At the macro level, Federal Reserve Chair Jerome Powell ditched quarterly forecasts, remarking in an emergency press conference Sunday night that, "actually writing down a forecast in that circumstance didn't seem to be useful and in fact could have been more of an obstacle to clear communications than a help."

 

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Nope!

She is a millennial, what does she know?

You can get list of all short sellers in this thread. Change the tax law to impose 80% on income generated from shorting a position. We(investors) have to do whatever we can to save the market from speculators.

No

No!

Totally, realDonaldTrump larry_kudlow stevenmnuchin1 we need credit markets functioning, stock market NOT required to run the country, NO ONE IS GOING PUBLIC! The market is broken companies can NOT be priced, shut it down till curve flat like everything else.

Suddenly the house is losing and asks for a timeout. Yep, sounds like crony capitalism to me.

No. No. No. we need to flush these ETFs out.

You the media are restricting market efficiency with your dishonest coverage of the virus

The great swings are being caused by programmed trading. Don't blame the humans being dragged along.

And pop the derivative bubble

5

İnvest all your money on bitcoin 👍

No thank you. Already far too much intervention in markets with use of circuit breakers etc.

Capitalism is only fair when my portfolio doesn’t lose value. 😂

Stocks will find a floor , supposed to be a free market .... let it crash and welcome back a fair value market we will all be back buying at sensible levels and it will naturally return to normal. Get rid of the Fed manipulation for Christ sake!

Why still overvalued ! Sorry stocks are only allowed to go up how stupid of me ! Bad on shorts coming to the US soon

Don't just talk about... if a two-week trading holiday is necessary than do it. Duh.

No you just need to shut the stock market down forever because it’s a fake currency that literally kills people. By taking jobs away from them because of stockholders

You had no problem inflating the bubble

All these day traders getting their panties in a bunch is hilarious

Keep it open but limit shorting activity, that wasn’t the right thing at the 1st place

And there will also be a lot of losers who have taken positions - will the state help them too, probably not. Let's let things run their course - perhaps this will also help ground politics and create a greater incentive for the common good. 2/2

Do we have free markets or not? Does capitalism only apply in times of rising prices? Now that the stock exchange is really trying to reflect reality, the markets are to be closed. It may certainly help to calm them down, but it will not eliminate the cause. 1/2

great idea. The market is supposed to be about business and all its focused on is the virus. It is not functioning correctly . You are correct.

How about giving the media a 2 week holiday? Or 2 months? StopThePanic

Declare a day of Fasting & Prayer for the entire world. Locusts, fire, tornado, floods, volcano, & plagues are spiritual occurrences. Dirty Don proclaims he is the chosen one & therefore he can do whatever. God is a battle ax, His arms are not too short, the battle is the Lord's.

We need to immediately reinstate the Uptick rule and ban all short selling completely.

Get it, richest looses exponentially more than poorest in vertical melt down. Where was the call for two-weeks trading holiday during decades of vertical melt up? Why the worry now? When CoronaVirusOutbreak is contained, market WILL vertical melt up again? Question is when?

The market is functioning perfectly well by pricing in all the risks. The only reason to call for a market shut down is to bail out the broken hedge funds by invalidating the options they hold. Buying or betting on the dip was a foolish position to open.

zbits33 like i said

If you need a break from the market feel free to sell your holdings and go on a vacation.

Horrible idea. Ppl depend on their investment income+cash flows. Closing the market will result in a bigger sell off. The difference between stocks and illiquid assets is the liquidity. If the market is closed everything will fall by 20-50% to adjust for the liquidity premium.

Yea. So people who need $ while they're out of work can't get their $ just to try to keep your 'portfolio' from going down, but of course it'll go down even more after the two weeks bc the US markets will no longer command higher valuation due to reliable operation and liquidity

Most UN-AMERICAN thing you can do. Close markets because you don't like the results. Ok Stalin 👍

Nooooooooo

Don't see why not. Most businesses are shutting down for the ChinaVirus, why not the exchanges? If people are very worried, try 1 week with a week's notice.

JUST SAY NO TO SOCIALISM. NO ONE SAID THIS DURING THE MELT UP. KEEPMARKETSOPEN.

1. No. Stop manipulating and let the inefficiency of the market work itself out. If it goes down, so be it. That’s what makes it a MARKET, not a PONZI 2. Markets are globally connected. You can affect a closed US market with global derivatives creating even further dislocation

No, keep going. Zero that fucking thing out. We don't need it. It's been a yoke on our neck for decades. We can do better.

No we need a new president

Financial markets should be shut for 2 months, cash used to combat health emergency, invest in workers (which is why they are tanking)

Why don’t we just keep pumping it full of steroids until there’s no money left?

No. Deal with it.

I said that last week genius. Check my tweet history.

Agree 100%. At least 2 weeks. And when trading resumes, there is never again to be a single share traded by computer/algorithm.

I think the whole planet needs a holiday, mate.

Translation: We are long, caught out and the market crash is making us look stupid.

Stupidest idea yet

super bad idea....

Agreed. Much needed at these times. COVID2019

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