SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Lucretius who started this subject9/17/2002 11:27:43 PM
From: Teri Garner  Read Replies (2) of 436258
 
Volumes will determine bear's life

By Mark Hulbert, CBS.MarketWatch.com
Last Update: 10:12 PM ET Sept. 17, 2002

ANNANDALE, Va. (CBS.MW) -- Tuesday was not a good day for brokerage stocks, with Charles Schwab (SCH: news, chart, profile) announcing that it was laying off another 10 percent of its staff and JP Morgan Chase (JPM: news, chart, profile) announcing that third-quarter profits would fall "well short" of the previous quarter's level.

The culprit in both cases: Lighter-than-expected trading volume by clients, resulting in lower commission revenue.

And if the forecast of a veteran newsletter editor is even half right, the worst is yet to come for the brokerage industry: Trading volume will virtually dry up before the current bear market has run its course.

The editor is Richard Russell, editor of Dow Theory Letters dowtheoryletters.com, the newsletter that according to the Hulbert Financial Digest has the best stock market timing record over the last 22 years.

Russell has an alarming prediction about what will happen to trading volume: "How low will volume go before this bear market has ended? As a guess, I'd say that we'll see volume running as low as 100 to 200 million shares a day at or near the final bottom of this bear market."

To put Russell's comments into perspective: On Tuesday, volume on the NYSE alone was 1.4 billion shares.

marketwatch.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News