Posted on 10/14/2008 7:17:13 AM PDT by prolifefirst
Some hedge-fund titans have yanked most of their money out of the stock market, a bearish sign amid Monday's euphoria and an indication of how the hedge-fund business is changing amid chaos.
In recent days, Steven Cohen, the hedge-fund manager who runs the $14 billion SAC Capital Advisors, moved about half his funds, or about $7 billion, into money-market and other short-term securities, eliminating much of his fund's exposure to the stock market, says a person close to the fund. Mr. Cohen plans on sitting on the sidelines for the rest of the year -- trading a small portfolio himself ...
(Excerpt) Read more at online.wsj.com ...
What does this mean for Ma & Pa investor?
That’s what happens when the leading candidate promises to increase the cap gains tax in January.
Commodities trader, CNBC commentator, former Soros partner, and author Jim Rogers bailed out last year. Prescient, yes?
All following from http://en.wikipedia.org/wiki/Jim_Rogers
“In Sep. 2007, Rogers sold his mansion in New York City for about 15 million USD and moved to Singapore.
…his belief that this is a ground-breaking time for investment potential in Asian markets.
Rogers’ daughter is being tutored in Mandarin
“Moving to Singapore and Dubai now is like moving to New York City in 1908. If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.”
On May 5, 2008, Rogers said that people in Asia are extremely motivated and driven, and he wants to be in that type of environment to be himself motivated and driven.
This is how America and Europe used to be.
Well, if he “yanked” $7 billion out of the market “in recent days,” then he has probably lost about $3 billion on thosse funds since the first of the year—and another $3 billion on the funds remaining in the market.
He may be right about what it will do in the near future, but he sure was wrong about what it did over the last couple of weeks.
We may very likely get a lower low at some point, but last Friday was a bottom, for now at least.
It means that the market still has more to go down.
>>>That’s what happens when the leading candidate promises to increase the cap gains tax in January.
yep, from 15 percent to 30 percent (on long term gains).
i’m not sure the markets are in process of discounting that entire 15 percent, but certainly some part of it is due to Obama’s probable victory.
Some?
So what? How many are putting money in?
Dumb article.
>>>>maybe he knew the plan be activated by the grim reaper - Soros and the DNC.
you’re indulging yourself and your naivete. rogers is nothing like Soros.
timing often tells a tale - what is the tale?
If all that's the case, where did the money go? If $7 trillion got sucked out of the market, it did not disappear. I checked the commodity markets (e.g., gold, silver, etc.) and there's not enough movement there to suggest that's where it all went. Indeed, looking around it appears that money is simply sitting on the sidelines waiting to see what happens. Some fraction was recommitted on Monday, but there's more out there. Also, keep in mind that millions more appears in the fund's coffers each week as automatic contributions to pension plans, 401K’s, IRA’s and the like build up.
Yea, I was down about 25% last Friday, but I never sold a thing. Yesterday was really good for me, so I'm still down about 15%, but improving. The point is, given what I see in other markets I don't see the funds bailing out of the market in the long run. Therefore, I'm sitting on the sidelines and waiting it out and cherry-picking the high dividend stocks. One stock (PRGN) is paying over 30% in dividends! True, there's risk, but for that kind of dividend, I'm willing to take a chance.
Is the glass half full or half empty? I prefer to think half full.
>>>>>timing often tells a tale - what is the tale?
The tale is China.
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