what we are seeing at the moment across the board is a mass deleveraging. Some hedge funds for example were leveraged 50 to 1. That's why commodities have copped it so much of late. many hedge funds and intos that are facing redemption calls are just liquidating everything. That in turn leads to margin calls for individual investors and further selling. throw all that in against a backdrop of no buyers
As has been said many times in recent days this mass unwinding has nothing to do with fundamentals, its all about fear and panic. MEO could well drop to 5c but that doesn't mean anything really from a fundamental perspective. it just means people are in trouble and dumping anything at any price to stay alive. The good thing to remember is that as savage a fall as some stocks have seen there will be almost as sharp a rise when the fear subsides and normality returns. It's just a painful process that needs to be worked through.
Don't get caught up in all these sinister conspiracies.
MEO Price at posting:
12.0¢ Sentiment: None Disclosure: Held
