mortgage rates today
The rapidly falling stock prices over the past days and weeks made many stockbrokers not only a loss, but they are likely to have in some cases led to panic. But panic is a highly emotional state. And where emotions dominate the picture, as it often takes the mind a little too short.
So it is hardly surprising that there were also true conspiracy in this environment. And who is surprised that this also once again the "infamous" hedge funds have been mortgage rates today the focus. If one believes these voices, so they are not only responsible for the "unjustified" price losses, but also for the truly dramatic extent.
Hedge funds are relatively "small" market participants
One for all and all for one? This creed does not apply to securities - to different the needs of investors. And yet there it: the golden rules for asset accumulation with stocks & Co. more ...
But arguments that come along loud and catchy, do not always properly sein.Und so the case is likely to be here. Whoever thinks in hedge funds primarily to the short sellers, takes a bit short. Only a small minority of these funds has lived alone from the speculation on falling stocks. These are mainly the values that they hold on the basis of company-specific properties to be overvalued - and not all markets.
Of course, technically oriented fund a downward movement will connect. But hedge funds are much too small to determine the trends of the markets as a whole can in most cases. According to serious estimates manage hedge funds a sum of about 600 billion dollars. This is absolutely mortgage rates today considered a huge number. Relatively speaking, the only two to three percent of all professionally managed funds, however, are worldwide. And it is just 0.1 per cent pure "Short sellers".
Distrust thinned liquidity from
Analysts at UBS Warburg attribute the rapid fall in prices mainly due to two aspects, the level of information of the investors and the market liquidity. Were the investors after the bursting of the Internet bubble already confused enough, so likely the bankruptcy and frauds à la Enron and Worldcom have led to a massive loss of confidence. Suddenly was no longer clear what information you could believe and what not. Not only is the information available, but also the system that they generated was no longer credible. Even former blue chips came under suspicion of graft.
For this reason, many potential buyers withdrew from the market, because they may no longer be able to distinguish sweet apples and sour lemons on offer between. Anyone mortgage rates today who has a lot to do with second-tier stocks, which can imagine what happens then: Even relatively small securities orders lead to relatively large price fluctuations.
Mutual funds and insurers as Seller
Just since the beginning of June 2002 have withdrawn about 70 billion from funds American retail investors. Since the companies were not enough liquidity, they may have been forced to sell in this relatively illiquid market inside. Many insurance companies and pension funds are likely to have been forced mortgage rates today to sell because their balance of receivables and payables was out of whack. Even those who have not sold but are provided protection through derivative products, contributed indirectly to the selling pressure. Because then the corresponding counterparty had to protect the market.
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