in the energy sector have got to be enormous. PM is a very liquid asset making it easy for funds to sell & raise cash. I have noticed, however, that the last 1/2 hour drops in PM are getting less severe indicating these funds may well be running out of inventory allowing buyers to step in.
I think your absolutely correct about hedge fund cashing in at customer requests.
There is a whole other aspect to it though. In general investors are exiting the markets. I work closely with annuities. At an alarming rate people are switching from variable market based annuities to fixed interest bearing annuities. Some are paying as high as 6% annually. People in 401ks and other retirement plans are switching all mutual funds over to bond funds, even though the bond funds are producing a small loss on a monthly basis, it's the only place you can hide in a retirement plan.
In simple terms, there is a mass exit from the market. From all angles. Mix in the media frenzy about this and a cut the losses mentality has taken over. Toss in hedge funds and no matter how much you beat earnings you won't go anywhere.
interesting point regarding annuities. I also have noticed a lot of investors moving into these assets - especially people close to retirement. People want a guaranteed income stream...our stock markets once again demonstrate that they are a very dangerous place to invest your money. Still it's a shame that that old Wall Street mentality of throwing the baby out with the bathwater still endures. Fear, panic & greed rule.
Def hedge funds and mutual funds having to liquidate positions. PM reported solid earnings today and long-term investors will be rewarded. Just sit back... collect the dividend and wait. www.generationyinvestor.com
PM owners are taking things way to personal. Look at mighty Apple (AAPL)..even though iyt was up today, it close at $96, down from it's 52 week high of $202!!!! PM has been hit ard, but it's a being at 45% of it's 52 week high.
Also, PM has one of the largest ownership levels among the Mutal Funds! When those guys gotta raise cash in a hurry, they go to their "inventory" to find things to sell, and PM makes up a large part of it!! Not to mention that it has suffered near as much as the Oil/Oil related stocks!