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 : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Robert Graham who wrote (13154)7/26/1998 1:59:00 PM
From: bluejeans  Read Replies (1) | Respond to of 42787
 
This is because funds have now been maintaining very low cash positions to service redemption requests. When there is a large interest by people in liquidating their fund holdings, this forces the fund at a disadvantageous time to liquidate their stock positions. They have no choice or time to unwind their position. So you have allot of anxious sell orders hitting the market at once.

Some funds have arranged for a line of credit to help mitigate this issue.

Bob