The surging stock market is a bit of a con job, trading execs tell the NY Post.
According to the pros, the roughly six-month market rally (down days notwithstanding) has nothing to do with any signs of a economic turnaround on Main Street.
You can see the disconnect in the number of shares being traded. The volume of New York Stock Exchange-listed shares in all markets averaged 3.8 billion in the last quarter — a sharp drop of 14 percent from the same period in 2011. In Standard & Poor’s 500 stocks, it’s averaging about 5.8 million shares this year, a steep 27.5 percent decline from 8 million in 2009.
The market’s overall rise since October is on sharply lower volume, as many hedge funds have disbanded, and skittish investors have rushed to exit equity mutual funds for bonds and other asset classes.
“The volumes are affecting everybody, let’s be real about this,” Doreen Mogavero, an NYSE floor trader, told The Post. “We have a different participation in the market than in the past.
Read more: http://www.nypost.com/p/news/business/why_market_rally_is_just_an_illusion_xFBSy2T5WXUKU1FOfrXDjK
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