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Wednesday, October 15, 2008

What happened to the FTSE rally?

Financial markets have two great phrases to describe the recent FTSE rally. The first is a dead cat bounce. Well, the cat bounced, and it is now heading back to earth.

My favourite description is a sucker rally. The market slides, and naive investors think it is oversold. They jump in, allowing others to jump out by selling on the upswing.

The FTSE is down about 7 percent today. The market is down 27 percent since September 2nd.

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