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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?


To: The Ox who wrote (4060)10/11/1998 10:13:00 PM
From: Alias Shrugged  Read Replies (1) | Respond to of 14427
 
LT

What are your thoughts here? If the scenario banging around in your head is too tough to lay out (without typing half the night), just describe what you see as the trigger for the market fall.

Lately, seems that highly leveraged players are seeing one trade after another blow up in their face, causing many other players in the trade to rush to liquify their holdings. This action causing more havoc for other leveraged players. This giant wrecking ball has been slowly mauling various markets and players, but the US equity markets don't want to fall over the DJIA 7400 cliff.

How much leverage underlies current equity positions? I guess there are limits to the leverage retail investors can use, whilst "the real pros" get to strap dynamite to their chests (50 to 1 or 100 to 1 leverage) and run around and yell "I'm bullet-proof!"

I think many retail investors are holding here. Sure, they will sell at lower levels, but what is going to push us down from 7400?

Thanks for sharing.

Mike