Photo: Richard Sunderland on flickr
For some interesting what now reading, check out the latest from David Goldman who chalks up the insane selling over the last two days to liquidity-driven hedge fund selling more than anything else.His conclusion:
Investors appear to selling what they can, not necessarily what they want to. Why should electric utilities like Con Ed and Duke Power track the market down? These are the most boring bond-like equities in the universe.
CNBC right now is warning of reports that major head funds are taking massive losses, quoting the reports I cited earlier that the $1.25 trillion in equity hedge funds was massively bulled up in May. Now the hedge funds are all trying to exit through the same keyhole.
Stocks are stupid cheap by any valuation criteria. I’m not selling. I hope I’m right.
Read his full post here, with some good comments on the collapse in Bank of America shares.