“We’ve Never Seen this Before – Such a Huge Rally, and the Little Guy Is Out”

Joseph Stiglitz says that Wall Street is hyping up the economy to sell more stock.

Has it worked?

Well, the stock market certainly has rocketed up from its March lows.

But many investors are still avoiding equities.

As Vincent Deluard – a strategist for TrimTabs Investment Research (25% of the top 50 hedge funds in the world use TrimTabs’ research for market timing) – says:

We’ve never seen this before – such a huge rally, and the little guy is out.

In other words, the stock market rally is due almost entirely to hedgies, pension funds, banks and other institutional investors, and not every day investors.

It is even possible that the government itself has been propping up the stock market. And Bill Gross and Nouriel Roubini say that we have a Ponzi style economy.

TrimTabs notes that small investors pulled out $14 billion net from stock mutual funds from the beginning of last year through mid-December, on top of a net $245 billion withdrawn in 2008.

Given that, at the end of September, individuals held 80% of the $19 trillion in stock in U.S. companies, both private and public – according to the Federal Reserve (see this, for example)- recovery will not happen so long as the little guys are sitting on the sidelines.

TrimTabs notes that most of $592 billion taken out of money market mutual funds last year has gone into bond and bond-hybrid funds instead.

No wonder David Rosenberg is saying:

  • “People have been lured into two bubbles seven years apart, and for a lot of them it’s over.”
  • “The bulls say if the market is up this much without retail investors, just watch when they come in, but it isn’t going to happen.”
  • Investors who have not been spooked or angered by the market are probably too poor to buy anyway.
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  • Looks like individual citizen investors are getting the idea the market itself is a pyramid scheme. While made up of companies, the investing and trading firms make money from money, and they make most of the movements happen. These firms only function while people continue to sacrifice their money into the system. Wall Street doesn't make money, it just shuffles it around, and that lets parasites skim off the top.Who is John Galt?

  • The depth of the human depravity and corruption exhibited during this depression -shows absolutely no sign of abating.There is no stock market rally going on. Get that through your thick skull.It's all just another government bailout for the bankers, Wall Street brokers, and discount brokerage houses like that swindling Ameritrade that is owned by the rapacious Toronto Dominion out of Canada.They are all selling -into- this government-money-led rally -as fast as they can. They are tripping over each other to sell stocks to the next fool that lays down his money. The stock don't even exist, the greed is so great. These are short sales that will be covered soon enough.It's like getting a reprieve after death. None of this stock market rally is led by fundamentals. It's all a fraud designed to keep Obama's inauguration party going. Remember 700 billion dollars worth of walking-around money!And the biggest swindling money yet, -will be made when they pull the plug -and it all comes crashing down again, but even worse. They;re locking in those gains right now.Then people will start saying, "depression", then, -those who haven't slit their wrists.Anyone left in there with a 401k or whatever -should seriously have their heads checked for loose nuts and bolts.In other news, -"Ultimate fighting" needed to close NY budget gap-. http://www.reuters.com/article/idUSN1116221620100111?type=marketsNewsWe all start out human beings when we enter this world.There are very few of us left -who will remain human beings throughout our lives. Drugs, booze, greed, bestiality, lust, arrogance, gluttony, superhuman delusions of grandeur -and more- take their human toll -long before the grim reaper puts pennies on our eyes.We should all note in passing, Governor David Paterson of New York has clearly left the building -with this one.

  • This is frontrunning using HFT to pump the market. The public isn't buying it.

  • c'mon guys…there is no reality left in life, except maybe behind your closed doors. Life is a steaming pile of shit, that is perfumed to be acceptable, and we step in it everyday without thinking twice.You eat shit. You drink shit. You breathe shit. Your mind is fed shit. Its all shit.So when you either decide to stop "perfuming" or ya just run out of that slick smelling stuff…breathe deeply and remind yourself that the shit smell won't go away until you GET RID OF THE SHIT.

  • Last week WSJ reported similar story about the manipulation and Goverment intervention by presidential directive PPTREAD MORE HEREhttp://www.nextglobaleconomy.com/?p=96

  • Someone during the Bush administration said we are spending like there is no tomorrow… Well. Probably there wont be any tomorrow. all money is created out of thin air and the stock market is a big ponzi scheme. Now this generation starts to understand it. but too late after the NWO is consolidating