From Barrons today:
“…individual investors feel, as Alan Newman of Crosscurrents puts it, “the deck is stacked, the game is rigged against them.” And they feel that way because it is. As Alan laments, “The public has gotten the shaft from Wall Street, from the SEC, from short-oriented hedge funds and now from high-frequency trading.” The market everyone knew, he says, has disappeared, and in its place is an arena in which the long term not only doesn’t count, it doesn’t exist. Indeed, we suspect that the metamorphosis from exchange to casino is the root of individual investor disaffection. And the singular virtue—if that’s the word—of the ultimate meltdown Albert Edwards is yearning for would be to clear the air, restore the long-term to its rightful place in the investment quiver and eventually restore Jane and John Q.’s faith in the stock market.”
Nonsense.
Markets go up. They go down. They go sideways. Nothing new there. How in the world can buy and holders blame so-called high frequency trading for the Dow going sideways for 10+ years?
