SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Rande Is . . . HOME

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rande Is who wrote (22751)3/29/2000 12:49:00 PM
From: Jon Stept  Read Replies (1) of 57584
 
re: NAZ selloff...

Hi Rande,

Great thread.

The selloff might be influenced by hedge funds, especially those that are used by the bond markets. These same funds supposedly drove the dow back up when the bond hit some threshold, I think %6 a few weeks ago.

Bond market used to hedge in bonds, but too many got burned earlier in the year when the fed didn't auction as planned. So, now some bonds use the equity markets as a hedge... not exactly predictable, but I guess more predictable than some bonds in some situations.

From what I understand, the bond markets absolutely and overwhelming dwarf the equity markets because of all the world governements banks and financial institutions using it to hedge their holdings, let alone make any money.

I am still trying to understand bonds and their relationship to equities. It seems like an invisible player that is driving the volatility over the past 4 months and is little mentioned in the mainstream press.

What do you think?

Just my opinion.

Jon :)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext