The Inefficiency of Markets in Times of Stress

More and more it starts to become common wisdom that it may be very wrong to rely on markets in times of trouble. A nice note on the point is made by Avinash Persaud.

A simple look at my favourite graph of today, makes this point as well (stock price of Volkswagen):



According to the market price Volkswagen a German carmaker (which essentially is owned by Porsche and the state of Niedersachsen which has a veto right) doubled its value today and became temporarily the world largest company......

...too bad I had no shares of the company to sell at 10am.
Soon we should know who was on the looser side in this gamble.