Friday, October 24, 2008

S&P Limited in Futures Rout

There is a feature of electronic futures markets called a "limit-down" that dictates that certain indices are not permitted to fall beyond a certain point in overnight trading. This is sort of the financial equivalent of a circuit breaker tripping to avoid a fire.

The S&P 500 got down-limited last night.

Here's some advice - change your 401(k) password to something random, then forget it. You shouldn't be looking at it more often than once a quarter. Seriously.

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