Friday, Oct 24, 2008

How the hedge fund squeeze will push stocks even lower

MoneyWeek: How the hedge fund squeeze will push stocks even lower

If you think the market's bottomed, you're wrong, writes David Stevenson. Hedge funds who bought shares with borrowed money are being forced to deleverage – which means dumping stocks. And that's going to drive prices down further...

Posted by damien @ 11:32 AM (283 views) Add Comment

4 Comments

1. renting2 said...

FTSE 100 below 3800 as I type.

Friday, October 24, 2008 11:40AM Report Comment
 

2. techieman said...

yes renting - looks like the last swing low as i have said for a while, and soon a meaningful rally. The problem with hedge funds is they aint. If they were they would be composed of traders who are able to go long and short successfully.

Friday, October 24, 2008 12:18PM Report Comment
 

3. str 2007 said...

techieman
You don't see this article as being correct then ie alot more selling to be done yet ?
3787 as I type and has picked up a bit.
Is my upper 2 guesstimate wrong then - can't believe it. (be patient).

Friday, October 24, 2008 01:01PM Report Comment
 

4. plato said...

Hope you are right techieman. I have an oeic which I juggle around the funds and shares in China oil & gas production which I dare not move....... lost about 40% after a few years most of it last few months.......nothing big but relying on this to cushion me when I visit UK next year. Need a rally to get out and cut the losses........... Ouch!.

Friday, October 24, 2008 01:31PM Report Comment
 

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