Exclusive: This is What Sell Season Looks Like
End of Year selling in miners, Buying in futures
This is what Sell Season looks like.
This is sell season.
During Sell season, you get liquidation of shares for one reason. People want their money back.
Someone has liquidated shorts in Gold last month. Someone is liquidating mining shares now and possibly as far back as 6 months
They may want their money back due to poor fund performance. They may want to harvest tax losses to offset gains elsewhere. They may also be losing money in other positions and need the cash to cover. They want their money is all we know.
One thing is certain, in a year where interest rates have climbed to 5.25%, making money is both harder to do and harder to keep.
In times like these, good assets get unfairly sold due to financial risk, not business risk.
Put another way. The world is too leveraged, and as that leverage shrinks, those with the least amount of actual capital are forced to capitulate