Highway To Hell! Hedge Fund Liquidity Falls to Danger Zone in U.S. Stock Market

Highway to the danger zone!

(Bloomberg) — There’s safety in numbers. Until a stampede starts.

That’s the theory underlying a study of hedge fund holdings by Novus Partners Inc., which sought to calculate how easily the market could absorb concerted selling by large money managers. Using an analysis that turns mainly on how much volume is occurring in stocks favored by professional speculators, Novus says liquidity is at an all-time low.

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Herding hurts liquidity.

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Or is THIS the highway to the danger zone? Or Highway To Hell?

highwaytpher
Here is a video of hedge funds herding.

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