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Authored by: Anonymous on Tuesday, April 23 2013 @ 10:28 PM EDT |
A whole lot of traders now engaged have never seen a bear
market. Interest rates are still effectively zero which is
no guarantee that there won't be a big sell off but it
favors stocks. Individual small speculators can protect
themselves with options or option spreads even if there is
a sell off. Even so, almost half of the pension fund money
managers got whacked the last time there was a serious
downturn. How they could lose that amount of money can
only be explained by incompetence. The simplest of put
option spreads would have alleviated most (but not all) of
the risk so yes, they are fools but not necessarily
because there was an event that qualified as nothing more
than statistical noise today. I question the reporting on
this one. I need more evidence that traders that seriously
believed that the white house had been attacked were
responsible for no more than a 150 pt. sell off. I don't
buy it for a minute. Sorry, this is bogus reporting.
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