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If an investor thinks a piece of news has a chance of causing a sell-off, he is likely to respond by selling, too, thereby feeding the frenzy he anticipated.
The risk of such an approach is of contagion, with investors fearing that a Greek exit from the euro could set a precedent for other countries to leave, causing a sell-off in the bonds of Portugal or Italy.The alternative would be to do some deal that extends the Greek debt even further, "to infinity and beyond" in the catchphrase from the "Toy Story" films.
That's causing a sell-off.
Similar(57)
This caused a sell-off in bond markets, dubbed the "taper tantrum".
But jitters about the economy caused a sell-off at week's end.
A profit warning by the Southeast regional bank Wachovia -- which sent its stock tumbling 13 1/8, to 57 1/16 -- helped cause a sell-off in the sector.
Saudi Arabia caused a sell-off in the petroleum market with a unilateral pledge to pump more crude oil to reduce prices.
The European sovereign debt crisis, exacerbated by Standard & Poor's downgrade of the debt of the United States, caused a sell-off in the Russian stock market, but it hardly went into its typical free fall.
There was little news to cause a sell-off in the sector, but because technology stocks are normally volatile they often lead the market when big moves take place, analysts said.
A display of unity by OPEC heads of state at the conclusion of their summit meeting today was undercut by the leading oil producer Saudi Arabia, which caused a sell-off in the petroleum market with a unilateral pledge to pump more crude to weaken prices that have recently hit 10-year highs.
This caused a sell-off in global markets last year, spurring China's central bank to make a series of short-term capital injections to soothe investors.
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