Monday, July 7, 2008

Stocks: The Bottom Falls Out

Suddenly, the bottom has fallen out of stock index futures (see here the Dow), and there is a run for the hills (out of stock, into treasuries). The two often move inversely to each other. As traders liquidate stock index futures, they run for cover in treasuries, which are perceived as a place of refuge for cash. As I mentioned previously, the reason is irrelevant.

Dow
Treasuries