I know that's a technical term in the market. This is not about that. This is about what happens when sentiment changes.
It's changing. This happened today.
My best friend who has some extra money in a bank account decided after many years out of the market except thru mutual funds, he decided to open a trading account. He went to the local ScottTrade office. They took his money.
He traded. Bought some stock he feels like is at the bottom of it's market value.
After making his transaction he visited with the manager of the local office. He opined that business must be pretty bad right now. NOPE said the office manager. Never better.
He said that in a normal week they open 15 new accounts. They are opening 35 a week right now. He said that in a normal day in the past "Bull Market" that they did perhaps 400 trades in a good day. They are now doing over 700 per day.
People are coming in with money in hand and buying stocks. It makes me wonder. Maybe we are seeing the decline of the hedge fund guys, the mutual fund traders, the professionals and the emergence of people who just believe America will get better and are willing to take positions on their own without benefit of counsel.
I think this will auger very well in the long run. It might be time to get the mega traders out and put the people back in. I don't know.
It seems encouraging to me.
4 comments:
Vewwy innerestin... We did the same thing this week.
Kelly, I stopped in our local Scotttrade office and they shared the same story.
His explanation is that many people are disgusted with the poor job of money management of the porfolio managers they "hired". Now, they are taking control themselves and pulling their money out of the Mutual Funds that have treated them so badly.
Verrrrry Interesting, I agree.
Don't be greedy, Put it in ING.
Why would God ignore the fastings and prayers of his people going up to him and let Obama be elected? God doesn't want Obama to be president, so this tells me Obama cannot succeed because God is against him being president.
Since God is against Obama being president, Obama has a major problem in getting elected.
Yes, I know Hitler ruled, but were Christians praying for God to stop him? Saints are praying and I do not believe God will allow Obama to win this election.
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