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October 10, 2008
Market Q&A
9:24 am
MBA: market is crashing today, down almost 700 already and oil is getting crushed
me: is it because short selling is back?
MBA: thats part of it. no confidence in the system; ok, only down 400 now - crazy
MBA: economy is in a recession and the credit markets are completely frozen. its simple
9:41 am
me: so who is pulling the money out of the market at this pace?
MBA: everybody at this point. today they are saying the large mutual funds are liquidating because small individual investors have started to stop putting money into their accounts or flat out withdrawing it. possible indication we're near a bottom since the small investors tend to be the least knowledgeable and savvy
me: but there are people that make money as it goes down correct?
MBA: yeah, short sellers or people who own puts
9:48 am
MBA: there are quite a few ways to make money in a declining market such as options
MBA: now the dow is positive!
Posted October 10, 2008 10:02 AM in in Recession category.