21/06/2002
Classical equilibrium economists work on the theory that as markets fall more buyers will come in thus achieving a balance. This fails to take into account human nature and reality and this is why so many economists are chumps. In the UK we are seeing insurance companies being forced to sell equities in a falling market in order to meet capital adequacy requirements. We then also see tracker funds being forced to sell which then also triggers stop losses in the futures market thus adding to the fun. Economists can witter on all they like about growth prospects and safe havens but the market is always right, unlike them!
US markets are lower overnight as is the dollar. Trade figures from shrubland at 1.30 UK time. Our positions remain as usual.
In Italy the president of Perugia football club sacked their South Korean striker for putting them out of the World Cup. Luckily Italy is shaped like a boot as you cant put that much crap in a shoe!
Harry