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Gold/Mining/Energy : Big Dog's Boom Boom Room

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zebra4o1
To: zebra4o1 who wrote (186817)12/2/2014 2:34:40 PM
From: teevee3 Recommendations  Read Replies (1) of 206107
 
In the 2012 correction, some counter parties went into bankruptcy. The energy company that hedged with the now bankrupt counter party lost 100% market value of the entire production hedged, not just the difference between the hedge and market price. Hedged positions in the energy sector are larger this time around. I expect counter party failures will take down some energy companies that don't have a well diversified hedge program.
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