[tzs]

> Higher liquidity and lower spreads give an investor more confidence in their investment

What do huge chaotic fluctuations in the price that have no connection whatsoever to anything that actually effects the economically correct price for the item do for investor confidence?

[wolfpackk]

The fact is that these huge chaotic fluctuations you refer to have decreased in severity as HFT has become more common. Please show me an academic paper saying these huge fluctuations have gotten worse?