We have now seen a heavy amount of stock selling the last five weeks. Not every spate of selling is the same.
In the past six years, the major underlying stock selling driver was a macro event. Examples include the U.S. sub-prime mortgage debacle, the Greece sovereign debt crisis, a European banking crisis, a China growth slowdown, the Cyprus bank blowup, Emerging Market currency contagion, the sign of a looming Fed taper, or the U.S. Federal debt ceiling debacles.
This time, investors may not have a major macro cause to link to the stock selling.
What I want to do this morning, to kick off the trading week, is send out a Real Time Insight to diagnose the causes of this latest selling event.
I think we all can agree not one single cause is the responsible party. So in this Real Time Insight, I want respondents to force a rank-order of the major causes on themselves. That way, we can see the strength of the multiple selling factors at play.
The Monday Morn RTI Question -- What is Causing the Selling?
A. Momentum Stocks Went Up Too Far and Fast… (Tesla Motors Inc (NASDAQ:TSLA), Facebook Inc. (NASDAQ:FB))
B. Small Cap Growth Stocks Got Overbid.
C. Big Short Positions Sped up the Selling.
D. Bargain Hunters Have Held Out This time.
E. Other (explain)
Original post
Force a Ranking and Explain!