Markets

Is Buying The Dip Dead? - Today's Editors' Picks

By SA Editors' Picks :

Good morning! I'm your curator, Jason Kirsch

Here are today's Editors' Picks:

Chart of the day:Comparison of T-rates

by contributor

Comment of the day, Regarded Solutions

Guess what happens when stocks begin to drop precipitously? Those investors get calls from their broker to pay down the loans! That means that many investors might need to sell shares of stock just to pay down margin debt. If that happens too often, more and more individual investors might need to liquidate everything (or have the brokerage liquidate for them), leaving them with enormous losses and perhaps even a charge for the difference between margin used and what the liquidated stock covers if the drop in share prices are very sharp.Sound like 1929 ? You betcha!

Image of the day:Wasteland

Quote of the day:

You must not lose faith in humanity. Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty. - Gandhi

Thanks for reading. Please share your 'Editor's Pick' with fellow investors by posting it in the comments.

Have a great day!

Jason

See also The Whole Is Greater Than Its Parts on seekingalpha.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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