Hedge funds are probably responsible for that first in the morning flushing of the toilet we felt..... all too familiar going back to the days of the crisis this is precisely what hedge funds did....
except now we know who the culprits are and why they are doing it with such forcefulness.
That stupid carry trade gets wound up so tight that any directional change (in this case the rising dollar) destroys their positioning and they are forced to go liquid en masse in all other parts of their portfolio if they intend to hang in to their position and pray the dollar falls.
We live in very strange financial market times. It's like a casino. All the various kind of hedges. The carry trade. Currencies. Leverage.
That's why I like income investing. We have to concentrate on just a few things. The yield. The companies' prospects. And a little look at the macro scene and how it affect the companies.
So, on a day like today, the yield is better, the companies are still fine, and the macro economic outlook is a little troubling but nothing to worry about in reference to how it affects our companies. So, what do you do? Buy