WEST PALM BEACH, FL (www.hedgeco.net) – Wall Street Investors went into panic mode selling yesterday on Delta Airlines warnings arising from further increases in crude oil prices. Stocks droppedsharply on Tuesday following Delta Airlines warnings of possible bankruptcy. There is also panic selling resulting from rumors of hedge fund losses in GM investments.
Wall Street was worried about possible domino effect resulting from the Delta Airlines warnings. Many investors are also worried that high energy prices may result in a new economic slowdown in the global economy. There are also fears about possible re-emergence of inflation.
Brian Williamson, an equity trader at The Boston Company Asset said, “A lot of this downturn today coincided with Delta’s announcement and the fact that crude was above $52 per barrel.� Williamson also said, �That�s got to make you concerned about who’s next as far as companies go and whether this will really hit consumer spending.”
There is also added worry that global hedge funds suffered heavy losses from their portfolio positions in General Motors stocks and bonds. GM�s bonds were downgraded to �junk status� late last week. However the rumors that hedge funds suffered significant losses were not substantiated but the damage to the investor�s psychic could not be reversed.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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