Last week the CEO of NYSE Euronext, Duncan Niederauer, told CNBC that the rally over the last month and a half was not spurred by Investors, but by traders. In the interview he cites the rather low volume considering the movement and that the investor still lacks confidence to venture back into the markets. (Read the Article here)
The rally over the past month and a half is the largest move up in a short period of time since the 1930’s. Without “Investors” buying stocks this might end up being the largest bear market rally on record. The market needs investors to buy and hold stocks to build on this already remarkable short term bull move.
Wall Street has burned bridges before and was able to regain the trust of investors rather quickly in the past. Wall Street needs a bull market to survive so obviously they will rally the glimmers of hope while discounting the vast darkness as “already baked in”. Will Investors buy into Wall Street’s “snow ball effect” attempt or have they finally crossed the line?
Wall Street has led you to believe that the market leads the economy by about 6 months. Wall Street leading the market assumes that the Investor will follow. Recent polls have shown that the majority of Americans do not currently trust Wall Street. Investors have already lost so much over the past year, have they had enough? Americans are spending less and saving more. Will they sacrifice more so they can risk more?
Tags: american, polls, stock market history, wall street
