Nah, most of the hedge funds are down 40%+ this year and getting worse by the day. They are getting massive margin calls AND redemptions. This article is a lot of speculation with no real teeth. The fact of the matter is the economy is in very bad shape, the banks are deleveraging and profits are dropping quickly. Nearly every CEO/CFO that has announced Q3 activity said in September sales basically fell through the roof and based on what I’ve seen October has been far worse. Keep in mind with an Obama victory, capital gains is going to double also so a lot are cashing out this year. I wouldn’t be surprised to see a retest of the lows earlier in the decade close to 7,000—or maybe lower depending on how some of this commercial paper starts to go.
Keep in mind with an Obama victory, capital gains is going to double also so a lot are cashing out this year.
Of course, a McCain victory should preumably have the opposite effect.