Malkiel

Risk Aversion Expected Until Tuesday's Inauguration

The lack of a bounce tied to election day, and the lack of any traditional bounces since then, would lead me to believe that hedge funds getting out is a bigger story than anybody else trying to get in. The only bounceable events this coming week would be a final vote in Congress on some specific measure like a tax cut. Short of that, the hedgies will try to keep selling to meet redemptions and even small hedge fund sales will swamp everybody else's bottom-fishing buys...