Stock Brokers Think Hedge Funds are in Trouble
Nov 14, 2008
Today we saw more evidence of tremendous volatility on the stock market. Earlier this week the market was way down, then yesterday it shot up over 850 points in a few hours. Now today it went down, then back up, and then back down to close 338 points lower.
Such volatility reminds us of a drunken giant trying to stagger home before collapsing in a drunken stupor.
But in view of yesterday's posting in regard to Hedge Funds, I thought it was interesting to read on the AOL news:
"Wall Street has ended a turbulent week with another astonishing show of volatility Friday, with stocks plunging, recovering and then plunging again as investors absorbed another wave of downbeat economic news. Hedge fund selling in advance of a Saturday deadline contributed to the market's gyrations, which set back the Dow Jones industrials almost 340 points."
It looks like Hedge fund investors really do see "the handwriting on the wall," and believe that many who invested in these Hedge funds are going to pull their money out, causing the funds themselves to sell off a lot of stocks in order to have the cash to give back to their investors.
It will be interesting to watch Monday's markets.