I have noticed in recent months a lot more small trades on some of the companies in which I invest. For example, a “boring” landlord REIT I hold fell by 2% this morning based on what appears to be a trade of one unit at $1.86. (Yes that’s a trade worth less than $2!) In all there have been 5 trades this morning to a total value of $71.
I can’t see what these sub-economic trades achieve? Do they move the market or has someone taken automated portfolio adjustment to a level far too low?
A: You raise a really good point.
Unfortunately, we live in an age of algorithmic trading and automatic portfolio adjustment, where examples like the one you quoted are all too common.
It is all white noise.
