We have now seen a heavy amount of stock selling the last five weeks. Not every spate of selling is the same.
In the past six years, the major underlying stock selling driver was a macro event. Examples include the U.S. sub-prime mortgage debacle, the Greece sovereign debt crisis, a European banking crisis, a China growth slowdown, the Cyprus bank blowup, Emerging Market currency contagion, the sign of a looming Fed taper, or the U.S. Federal debt ceiling debacles.
This time, investors may not have a major macro cause to link to the stock selling.
What I want to do this morning, to kick off the trading week, is send out a Real Time Insight to diagnose the causes of this latest selling event.
I think we all can agree not one single cause is the responsible party. So in this Real Time Insight, I want respondents to force a rank-order of the major causes on themselves. That way, we can see the strength of the multiple selling factors at play.
The Monday Morn RTI Question -- What is Causing the Selling?
A. Momentum Stocks Went Up Too Far and Fast… (Tesla, Facebook)
B. Small Cap Growth Stocks Got Overbid.
C. Big Short Positions Sped up the Selling.
D. Bargain Hunters Have Held Out This time.
E. Other (explain)
Force a Ranking and Explain!
Read the analyst report on ITW
Read the analyst report on BDC
Zacks Investment Research