Moszkowski said that the late-year sell-off is a regular occurrence:
After mid-November, the markets tend to get less liquid, and every year people think it is for a different reason. This year, it is clear something is going on in energy markets, which colors high yield, and a lot of the hedge funds become much less active, and so do the traders on the Wall Street desks.
Everybody is backing off on risk for the last six weeks of the year. It happens every year. Every year we point to something different. This time it is energy, and high yield. It is always something.
What gets blamed is what people should buy. If someone had a bad year and were pushed to sell their oil assets for a loss, they should have admitted making an error by holding into all time/expansion highs and start buying more as price drifted lower.
Its true, volume dies during the holidays but sometimes things move on low volume. I still think when the market crashes it will blame the oil glut. It is slowly tainting everything.
No comments:
Post a Comment