<p>At 1:15 on Wall Street, the Dow Jones average is losing 2.24 percent, the NASDAQ 2.31 percent, and the S&P500 2.03 percent (<a title="Yahoo Finance" href="http://finance.yahoo.com/marketupdate/overview"><font color="#92b211">Yahoo Finance</font></a>).</p>
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<p>A mass exodus is under way out of equities as evidenced by the flight to safe-haven investments in the Treasury’s with the 10-year note below 4.60 percent – its first since May.</p>
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<p>The Dow is settling in the 10 % backward trend – with the NASDAQ, and the S&P 500 – off its July peaks. The market has corrected.</p>
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<p>The FTSE100 in London closed at -4.1 percent, while the CAC40 ended its agony in -3.26, and the Xetra DAX fell 2.36 percent. Those figures speak for themselves. My only concern – we have another day go before the week ends!</p>
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<p><a title="Felix Ker’s Blog" href="http://felixker.com/special/singapores-stock-market-stumbles-as-analysed/"><font color="#92b211">Felix Ker’s Blog</font></a>: “I believe the markets will still be bad until end of August. Time to queue and sell your stocks – that’s my advise. Take a good rest and come back soon”</p>
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<p><a title="amateureconblog.blogspot.com" href="http://amateureconblog.blogspot.com/2007/08/how-to-speak-hedge-fund.html"><font color="#92b211">The Amateur Economist & Curmudgeon Blog</font></a>:</p>
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<p><a title="Slate.com" href="http://www.slate.com/id/2172224/fr/flyout"><font color="#999999">How to speak hedge fund. – By Daniel Gross – Slate Magazine</font></a>: “In these days of market volatility, hedge-fund managers and executives at all types of money management firms have been forced to explain why their funds are shutting down, losing money hand over fist, and freezing investors’ funds. When they do so, however, they frequently lapse into a strange euphemistic dialect. And so we thought it would be helpful to provide a handy Hedgie-English glossary.<br />
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Hedge-Fund Phrase: Unprecedented, unique circumstances<br />
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Translation: Stuff happens. But we had no clue.</p>
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<p>Anyone who read the best seller <a href="http://amateureconblog.blogspot.com/2007/08/stock-market-and-black-swans.html"><font color="#5588aa">The Black Swan</font></a> knows that random geopolitical, financial, and economic events can cause the prices of assets to move in ways that defy history and sophisticated computer models. But it comes as a shock to the brightest minds on Wall Street, especially those who run quantitative-based funds. “Wednesday is the type of day people will remember in quant-land for a very long time,” Matthew Rothman, head of quantitative equity strategies for Lehman Brothers told the Wall Street Journal last week. “Events that models only predicted would happen once in 10,000 years happened every day for three days.” Strangely, these same models failed to predict the once-in-10,000-year events that roiled the markets in 1997, 1998, 2001, and 2002.”</p>
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