Old Money Resurrects The Peoples Car

posted by: Dr. Michael Stone

for:

2008 · 12 · 07

When 80% of the market place acts the same way this causes an imbalance that we are yet to fully come to terms with…

Remember those contests to squeeze as many people as you can into a VW Beetle?

Well in October 2008 the Porsche Family broke all the records on the DAX with a stock market play that squeezed more than a few Hedge and Index Funds!

The squeeze naturally culminated with a good old fashioned ‘Bucketing Out’!

First to call foul have been Index or Passive Funds as they were trapped with overweight VW stock by the Bucket Out.

I think that these funds have become their own Zombie Monster!

When 80% of the market place acts the same way this causes an imbalance that we are yet to fully come to terms with…

On a positive note, just when selling had become a one way bet, those silverbacks at Porsche have reminded us all that The Big Stack makes the rules and The Big Stack makes the price!


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