You can’t have it both ways.
- Joshua M Brown
- January 30th, 2013
The same people who've spent three years growling about low volume and lack of participation being bearish are now saying that the reversal of that is also bearish. You can't have it both ways.
The argument was that no one is in this market except central banks and hedge funds, there are no real investors left so eventually this will collapse. There's no one to come in and buy, mom and pop are tapped out, etc.
This was a reason to run away from equities and batten down the hatches.
Now the retail investor is returning. People are starting to talk about stocks and their portfolios again. The Dow's new all-time high, god willing, is about to be on the cover of every local newspaper in the country, quite possibly the talk of the mainstream media and non-financial news shows.
The hollowness and "lack of participation" that you've complained about for 7000 Dow points now is beginning to change. People who've abandoned the market are coming back. After five years in the no-interest bonds and savings bank wilderness.
And this, you tell us, is also bad.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.