Tuesday, June 13, 2006

LIQUIDITY SQUEEZE



As the market continues to fall, there are a lot of chats about "liquidity squeeze", a sort of "margin calls on the hedges". So this correction is not about Big Ben, nor inflation, nor slowing economy, but a concerted effort by central bankers (starting with Japan) to pull the liquidity rug under hedges. If that is the case, shouldn't we, the small investors, i.e. non-hedge types, start to buy this margin call on hedges? We don't have the liquidity issue as we are not terribly leveraged, i.e. we did not get margin calls, (yet?). Isn't this then a terrific buying opportunity?

0 Comments:

Post a Comment

<< Home