Let’s just say that you have a point of view as to how the market should behave, and it is violating that prejudice or that supposition. You may believe that the market should reflect the economy; but “the economy” is one of those terms that means different things to different people. Is it employment? Corporate profits? Growth?
There are tremedous wads of cash lying around, much of it in bankster hands, and the government has effectively demonstrated to bankers and large hedge funds that as long as whatever theft or fraud is committed is of sufficient size, as long as good sized donations to the DNC are made, the prospect of prosecution is an utter joke. If the penalty for bank robbery was less than 10% of what was stolen, how many banks would be robbed?
Corporate profits are fairly impressive at present, and, many companies have refi’ed debt at generationally low rates and also shed employees. So large costs have gone out of corporate balance sheets.
Additionally, HFT trading controls the vast majority of trading on the NYSE and surely the NAS as well. These forces do not need the market to make large-scale secular sweeps in terms of trading ranges. They can make boatloads of money on these 100-200-300 DJ swings that don’t seem to do anything but cover territory already covered.
My belief is that there simply isn’t any other place to invest....not that there is a heck of a lot of investing going on...but the great thing about the market is that the opportunities for fraud are so juicy, yet almost entirely unprosecuted, while the liquidity of getting out of something before 0bama or Congress changes a law or does something (else) idiotic is also attractive. Eg; liquidity.
The point being, there is a behavior difference between how the market is behaving and your opinion. Guess what? The market is always right.
understand what you are saying, but the one thing that does not jive with your theory, is the volume of trading is not nearly what it should be if it were so.
Total volume is down from what I understand.
wads of cash in banksters hands because they no longer have any good investments to park them in. The government has seen to it that the US is a terrible investment and that money has no place to go.
Corporate “profits” and the cash they supposedly have lying around are a fabrication of the left to paint businesses as greedy and hoarding their money when they should be investing.
When you compare the profits and “hoarded cash” to their liabilities (debts), they vanish.
Some corporations are doing very well. Many businesses are just getting by and don’t have the capacity to expand.