First it was the blow up of hedge fund darling Valeant that crushed countless funds who were long the name.
Then, one month ago after the collapse of the Allergan-Pfizer deal, we showed (one of the reasons) why the hedge fund world continued to underperform the broader market: Allergan was one of the most widely held hedge fund stocks.
Submitted by John Rubino via DollarCollapse.com,
For as long as most gold and silver investors can remember, the paper markets - that is, banks and speculators placing bets with futures contracts - have set the price of those metals. And within the paper markets, “the commercials” - fabricators and big banks - have consistently fooled speculators like hedge funds into going long or short at exactly the wrong time.
With AAPL trading with a $95 handle after-hours (down over $40 billion in market cap), the blowback of the demise of this "no brainer" is echoing through the once impregnable walls of Nasdaq futures which are now down over 60 points from the cash close...back to one-month lows.
AAPL back to a $95 handle...
Smashing Nasdaq down over 60 points...
Back to one-month lows...
As most Americans have resigned themselves to the fact that merit increases are a thing of the past, and yearly reviews will only yield a pat on the back and new goals for the upcoming year, life is still good in the corner suite. CEO's are still getting raises, but don't be alarmed, you'll feel that trickle down effect any minute now.
First it was Twitter, now it is consumer tech titan AAPL's turn to tumble. For those pressed for time, here is the breakdown: