Citizens Have Fled The Rigged Casino
Even the Little Guy Now Realizes that the Stock Market is Gamed, And Many Are Pulling Out Entirely
"Joseph Stiglitz says that Wall Street is hyping up the economy to sell more stock.
Has it worked?
Well, the stock market certainly has rocketed up from its March lows.
But many investors are still avoiding equities.
As Vincent Deluard - a strategist for TrimTabs Investment Research (25% of the top 50 hedge funds in the world use TrimTabs' research for market timing) - says:
We've never seen this before – such a huge rally, and the little guy is out.
In other words, the stock market rally is due almost entirely to hedgies, pension funds, banks and other institutional investors, and not every day investors.
It is even possible that the government itself has been propping up the stock market. And Bill Gross and Nouriel Roubini say that we have a Ponzi style economy.
TrimTabs notes that small investors pulled out $14 billion net from stock mutual funds from the beginning of last year through mid-December, on top of a net $245 billion withdrawn in 2008.
Given that, at the end of September, individuals held 80% of the $19 trillion in stock in U.S. companies, both private and public - according to the Federal Reserve (see this, for example)- recovery will not happen so long as the little guys are sitting on the sidelines.
TrimTabs notes that most of $592 billion taken out of money market mutual funds last year has gone into bond and bond-hybrid funds instead.
The little guy has not gotten back in since then.
Indeed, AFP notes that high-frequency trading and other scams by the big boys has so obviously destroyed a level playing field that the little guy is getting out of the stock market entirely:
Michael McCaslin is wary of investing his retirement funds in Wall Street. Its volatility and cryptic trading techniques make him feel lost and unsafe, he says.
"I tried to watch the market over the past couple of years, and you're just lost. I look at the market now and it's like Las Vegas, it's a gamble," the 65-year-old pensioner said.
***
Yet the extreme instability that has characterized the markets since the 2008 financial meltdown, often blamed on highly speculative trading, and the increased use of super-fast automated trading systems make Wall Street a tough environment for small investors.
And as a result, more Americans have fled the stock market in recent months."
"Joseph Stiglitz says that Wall Street is hyping up the economy to sell more stock.
Has it worked?
Well, the stock market certainly has rocketed up from its March lows.
But many investors are still avoiding equities.
As Vincent Deluard - a strategist for TrimTabs Investment Research (25% of the top 50 hedge funds in the world use TrimTabs' research for market timing) - says:
We've never seen this before – such a huge rally, and the little guy is out.
In other words, the stock market rally is due almost entirely to hedgies, pension funds, banks and other institutional investors, and not every day investors.
It is even possible that the government itself has been propping up the stock market. And Bill Gross and Nouriel Roubini say that we have a Ponzi style economy.
TrimTabs notes that small investors pulled out $14 billion net from stock mutual funds from the beginning of last year through mid-December, on top of a net $245 billion withdrawn in 2008.
Given that, at the end of September, individuals held 80% of the $19 trillion in stock in U.S. companies, both private and public - according to the Federal Reserve (see this, for example)- recovery will not happen so long as the little guys are sitting on the sidelines.
TrimTabs notes that most of $592 billion taken out of money market mutual funds last year has gone into bond and bond-hybrid funds instead.
The little guy has not gotten back in since then.
Indeed, AFP notes that high-frequency trading and other scams by the big boys has so obviously destroyed a level playing field that the little guy is getting out of the stock market entirely:
Michael McCaslin is wary of investing his retirement funds in Wall Street. Its volatility and cryptic trading techniques make him feel lost and unsafe, he says.
"I tried to watch the market over the past couple of years, and you're just lost. I look at the market now and it's like Las Vegas, it's a gamble," the 65-year-old pensioner said.
***
Yet the extreme instability that has characterized the markets since the 2008 financial meltdown, often blamed on highly speculative trading, and the increased use of super-fast automated trading systems make Wall Street a tough environment for small investors.
And as a result, more Americans have fled the stock market in recent months."
posted by nolocontendere at 4:50 PM
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