Here's my latest warning : Do not be lulled into buying equities because there was a bounce in markets, where some losses were recouped. Or buying because there are stories of billionaires like Warren Buffett going in and cherrypicking opportunities. This is no stock market for investors. Period. This is going to be ugly for months, if not longer. Here is why, a fact missed by the mostly mediocre financial press: Another massive market meltdown consequence looms, on top of Washington's inability to show the world it will be a leader and mount a rescue. Huge market losses may occur because the deadline for hedge fund redemptions ended September 30 which will lead to the dumping of huge amounts of stock holdings. "Many hedge fund investors can withdraw money on Dec. 31. Some funds require that redemption requests be submitted 90 days ahead of time. That means requests have to be in by Tuesday (Sept. 30). Other funds require 45 days' notice, so there may be another round of withdrawal requests toward the middle of November," according to Market Watch. "Some managers have already been selling positions to raise cash to return money to investors. However, if redemption requests come in higher than expected, there could be another wave of selling and market disruption during the fourth quarter." The hedge fund industry is $2 trillion in size and dumping stock into this market is only going to hurt the funds and their investors even more ...
Anytime
