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marmar

(76,985 posts)
Tue Jan 26, 2016, 08:07 AM Jan 2016

This Stock Market is Really Sick, and Big Institutional Investors are Bailing out


This Stock Market is Really Sick, and Big Institutional Investors are Bailing out
by Wolf Richter • January 25, 2016


They’re slashing their equity allocations: BlackRock.


Stocks can’t seem to rally for more than two days in a row before getting hammered down again, punishing dip-buyers with relentless regularity for doing what had worked flawlessly for years.

Today’s swoon — the S&P 500 and the Nasdaq dropped 1.6%, the Dow 1.3% — put an end to the short-covering rally that started midday Wednesday, when the S&P 500 bounced off 1,812 and then rose 5.3% by late Friday. Draghi had given the buy signal.

“By the end of the week, weary investors had returned to an old habit: looking to central banks for solace,” wrote BlackRock Global Chief Investment Strategist Russ Koesterich, Monday morning before it all fell apart again.

But despite the vague promises embedded in Draghi-speak, it didn’t last long. Overall, it was a puny rally compared to the brutal selloff that had started at the end of December. The S&P 500, at 1,877, is now back exactly where it had been on March 10, 2014. Despite all the drama and volatility, it has gone nowhere in nearly two years — not counting anguish, fees, and taxes.

Large institutional investors are starting to figure this out too. And they’re planning to bail out of this cursed market. ......................(more)

http://wolfstreet.com/2016/01/25/this-stock-market-is-really-sick-and-big-institutional-investors-are-bailing-out/




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This Stock Market is Really Sick, and Big Institutional Investors are Bailing out (Original Post) marmar Jan 2016 OP
Why this is wrong... rjsquirrel Jan 2016 #1
Capital does not go anywhere, it simply SHRINKS golfguru Jan 2016 #3
Not in my economic system rjsquirrel Jan 2016 #4
I smell market manipulation RussBLib Jan 2016 #2
It's there rjsquirrel Jan 2016 #5
 

rjsquirrel

(4,762 posts)
1. Why this is wrong...
Tue Jan 26, 2016, 08:46 AM
Jan 2016

Where does the capital go?

The US remains the strongest market and economy in the world.

 

golfguru

(4,987 posts)
3. Capital does not go anywhere, it simply SHRINKS
Thu Jan 28, 2016, 05:01 AM
Jan 2016

Take one example. Boeing. It was down 9% today.
But only 2% of Boeing shares traded today.
Which simply means the other 98% lost 9% value,
without moving a stick. In simpler words, the value
of their capital shrank by 9%. If they had $100,000
Boeing stock yesterday, today it is worth $91,000.

Their capital did not go anywhere. It simply SHRUNK.

RussBLib

(8,985 posts)
2. I smell market manipulation
Wed Jan 27, 2016, 12:08 PM
Jan 2016

The high-speed traders employed by the biggest banks are still gaming the system, making tons of money on market swings while us little guys get slammed over and over.

There should be an investigation. High-speed trading should either be outlawed or taxed.

 

rjsquirrel

(4,762 posts)
5. It's there
Thu Jan 28, 2016, 12:59 PM
Jan 2016

But it's not driving the volatility of the last few weeks.

Patience. It's how you make money if you don't have Insider knowledge.

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