free fall, page-8

This is a reply for Koala.

I am not a financial guru, but in answer to your question......

ADY and other stocks are getting hit due to the wider implications of the subprime fiasco - even though stocks such as ADY dont have any direct exposure to it.

The wider implication is that the subprime disaster is about to tip the US into recession and if that happens, then the fear is that it will tip the global economy into recession, which would ultimately result in a slowdown in global growth. And you should be able to draw the dots on the wider picture yourself from here. A global slowdown includes countries such as China and when/if that happens, stocks like ADY will certainly feel the pinch because they have a direct link to China and future Chinese prosperity.

It seems very unreasonable and highly unjust that some over extended traders in New York should take away our paper profits on days like today, but this is an unfortunate side effect of economic globalisation.