Why are the markets so shitty.....Here is my take.
Lets go all the way back to say...1998 when I first started trading, I was 16 years old at the time, and I will explain what I have observed over this time period.
Most CEO's in Canada are useless pieces of crap that can't run a company properly. They pander to the big brokers and suck there $#%$% dumping tons of PP shares on the market and blow off there stock options. In the end the small investor gets screwed over. Everywhere you look there is a failure of leadership, progress, productivity and turning intellectual capital or resources into cash flow for shareholders.
We have had so many pump jobs, promos and bubbles since I started trading, all of which have taken a toll on investors which I will detail here from 98 onwards
Asian crisis, Y2K, Internet bubble, Biotech stock bubble, Let all invest in diamond stocks, Oil and gas especially as it relates to Income trusts taking them over, gold and silver juniors, Lithium, Rare earth and the latest pump job Graphite!!!! Real estate bubble, debt bubble, flash crashes, everyone losses their shirt 2008 crash, HFT, algo trading etc...Mutual fees too high, financial planner ran off Bermuda with all my money, Enron, Ponzi scheme Madoff and on and on....
All of this has completely turned investors off stocks. We have a population that has too much debt and that is aging. If there income has managed to keep up with inflation any "savings" they have now seem to go to the following....
1. School, do I spend the cash to upgrade my skills
2. Pay off all debts
3. Pay off mortgage
4. No mortgage invest in the house, new floors, kitchen, bathroom etc..
5. Leave some cash in the bank or under mattress
6. The smart ones have some gold and silver bars
7. Bonds....why the hell is anyone buying bonds..1.76% on the 10 year
8. GICs
Now the very very few investors left that have already done steps 1-8 then proceed to
9. ETFs
10. High yield stocks such as CPG, REI.UN, PSN
11. Lower yield dividend paying stocks
12. Derivatives, writing call options etc on the stocks you own in step 10 or 11
13. Other stocks starting with real assets, gold, silver oil gas etc
If the investors have any money left by the time they get to step 14, they proceed to the vulture...I mean venture exchange...Most never make it to this step.
Will investors ever come back into the markets in the same fashion before 2008? Probably not for a long long time, the bull shit parade continues. |
