How Speculators Exploit Market Fears

By | August 7, 2007

Wow, this is a great article. What he says makes a lot of sense. The companies are still reporting great profits. I believe the market is being driven down by hedge funds, especially with drops like 100+ points in a single day. That’s what happens when you instill panic in a tight crowd. It’s like shouting fire in a public area.

Last Friday, Dow Jones dropped by more than 200 points and all the investors started running to the exit. There was so much selling, the investors got squeezed out and had to sell lower, thus driving the market down.

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