The recent turmoil in the market has turned off retail investors. I do not see sideline money coming to the equity market. The market is mainly traded by hedge funds and traders so it is more technical based. The cash level in mutual funds is very low right now. S&P will trade between 1020 to 1120. TSX will trade between 10800 to 11800.
BP's impact on the market has been under-appreciated. It is quite possible that BP will cut dividends and its bonds will be downgraded. The liability can run to tens of billions dollars. There is a slight chance that BP can file chapter 11 to limit its liability.
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