New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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From: Arthur Tang	12/29/2007 5:17:47 AM
	of 435

True analysis of Wall street? 2/3 of trading is done by brokers. Only 1/3 is done by investors. Investors are often fully invested and on borrowed stock. So, the future of mutual fund investment is very shaky. Brokers however, are trading on marginal profits just to eek out a living. Occasionally, the stock may be supported by economy or good business plan to have 3 baggers for several years. Valueline charts certainly support such observation. Today, the large cash invested by individual into mutual funds created a problems with huge trades at low prices; then the buy back of borrowed stock punishes the rest of the small investors. This trend will continue, and every few years some mutual funds will be shaken out. Small investors shy away from Wall street since year 2000, when the bubble busted on internet stocks. Fortunately, steady growth of the economy based on merchandise distribution growth, kept main street economy healthy. Large stocks kept their value; and small stocks held their yearly tax loss selling for a January effect. Global investment is riskier, but many underdeveloped countries will be investing in infrastructure of their own. So, money keeps on being pumped into global economy.

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