Not everyone has been enamored with this “Bull” market. As a decades long retail investor and market watcher I have felt something hasn’t been quite right with this market for a very long time. I’m not talking about just 2008. I’m saying there’s not been a real advance in the market going back to at least 1998-1999. Yeah, those were bubble years, but I think they represent the end of a market that was at least, for the most part, REAL.
Retail (ma & pa) investors have pretty much abandoned the stock market for good. A lot of people have been in bonds during recent years and have done well, especially with accommodative FED policy driving bond prices up. Yields suck, of course, but look at bond prices over the last 30 years, via Stockcharts.com
The FED is actually practicing “monetary repression”, artificially holding interest rates near zero, while attempting to drive up inflation (remember the 2% target?). If you have savings, you’re screwed. There is inflation, and it’s way higher than 2%. Look at healthcare, higher education, electricity, food and gasoline(i). The things we must have are the things that are going up the most. Of course your cola(s) will not reflect the real inflation rate.
Getting back to the retail investors, a lot of the old Market Bulls are sure that the best is yet to come because Ma & Pa are still on the sidelines. Only when they get back into the Market will there be a top. No Sir. Ain’t go’n happen!
I, for one, hope this Market continues to go down. The FED and the rest of the Central Banks are out of ammo. This time there will have to be real reform.
No more Hedge Funds, Accredited Investors, High Speed Trading, Programmed Trading, Naked Short Selling, 10:1 Leveraged Trading, Insider Trading, Calls, Puts, Stock Buy Backs with BORROWED Money, Special Dividends with BORROWED Money (ii) “Bull” Market BS. There is a bubble and it’s going to pop.