A worsening economy has pushed the market down.
A global recession has pushed it down further.
Will the latest Wall Street scandal push it down more?
Some of the hundreds of losing hedge funds have written letters to investors saying that they won't accept requests for redemptions until a later date.
Most, however, have been forced into selling to meet an avalanche of redemption requests for January 1.
This massive selling is another reason why the market fell so quickly. Could we get a little rally after January 1?
Institutions will have to reinvest this money. Treasuries and money-market funds are returning next to nothing. The stock market could be the beneficiary by default.
But the Bernie Madoff (is it pronounced "Mad Off" or "Made Off" - as in made off with the money) $50-billion rip-off (Good news: he may have cheated investors out of as little as $30 billion!) may trigger a new rush by institutions to get their principal back. A lot of funds of funds had exposure to Madoff.
That would mean more selling and could blunt a bear rally. Thanks a lot, Bernie.
INTERNAL ENDORSEMENT
Imagine Knowing of a Casino Where the Dealer Tipped His Hand Before You Made Your Move and Didn't Care How Many Times You Beat Him.
When Would You Stop Going There?
This is nothing to do with games of chance, but I hope your answer to that question would be a resounding, "NEVER!!" Assuming you're sane that is… Well, that is a virtually PERFECT analogy of the power of the insider signal!
It's often said, "The Stock Market is just a big casino." And it's true. But the important omission in that statement (to keep the masses out!) is the dealer in this casino tips his hand to the select few… the insiders.
Such powerful knowledge could make YOU very rich indeed…
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