Comments on: MARKET WRAP – STOCKS PLUNGE

By: Anon

Anon — Thu, 29 Oct 2009 00:20:08 +0000

Ha Ha Ha. Wont it be something if the Galleon fund liquidated at the top !!

By: SS

SS — Wed, 28 Oct 2009 21:24:00 +0000

That is so true. Everyone thinks the money managers will chase performance this year, but what if it’s the exact opposite? What if these money managers all race to protect their good years? They can’t have back to back bad years. That would finish many of them.

By: Edna Rider

Edna Rider — Wed, 28 Oct 2009 21:19:29 +0000

It feels like a day in early Oct of last year when hedge funds were liquidating. This year my hedgie friends tell me they’ve reduced their books by a third over the past 2 weeks, and will reduce again before long. Nobody wants to have an up year turned into a down year and eliminate their performance fees. I am guessing this will be a bad 4 week stretch, with Thanksgiving (again) a turning point for an upswing, although I would guess it won’t last until Jan 1 like last year. The feeling I got from listening to managers last weekend was everyone felt like they hit a hole in one this year, but the ball hit a tree and the rake and then somehow managed up in the hole. There’s a certain embarrassed glee, but you can see the sheer panic in having literally no where to put money right now except Treasuries, in their own bubble, in my opinion. My own approach is to keep it simple: I own SH (tight stop), LQD, tactically trade the heavy dips of oil and materials companies and just sit in cash. I also turned off all the TVs for my team. We watch prices and follow the political headlines. It’s impossible to guess where we’ll be in Q1.

By: SS

SS — Wed, 28 Oct 2009 21:09:01 +0000

That’s an understatement. Some people have probably had their year cut in half in the last week just by being overinvested in energy and emerging markets.

By: DanH

DanH — Wed, 28 Oct 2009 20:49:48 +0000

Brutal session for anyone owning anything high beta.

By: tradeking13

tradeking13 — Wed, 28 Oct 2009 20:32:26 +0000

iShares MSCI Brazil Index (EWZ) -6.39% iShares MSCI Australia Index Fund (EWA) -4.51% iShares MSCI Emerging Markets Indx (EEM) -4.58% iShares FTSE/Xinhua China 25 Index (FXI) -3.72%