Institutional valuation measures triggered the selloff?

Discussion in 'Trading' started by crgarcia, Dec 11, 2007.

  1. The quick and decided decline suggests institutional selling.

    Maybe their valuation models reflected a 0.50% cut already priced in, so at 0.25% stocks were overvalued?

    After the institutional selloff, herd behaviour and panic took over reason?
  2. options on fed funds futures were pricing a 52%/45% chance of a .25/.50 cut.
  3. craneman


    That was not panic selling. This market has not seen panic selling in an awful long time.
  4. There's no panic's anymore because the fed has told everyone that it is here to gurantee your prosperity and to underwrite all credit risk.

    They should have a hot line where we send in all of our bad debt and it is banished forever!
  5. nkhoi

    nkhoi Moderator

    I see you are well qualify for some high position in our administration.:D