TRADING HITS 4-YEAR LOW
"Avramovic noted that options and futures volume set a record in 2011, as investors hungry to add risk looked for a place where they could use leverage.
“The options market has been breaking records for nine straight years and the shift has been a growing field that provides protection and leverage,” said Pete Najarian, co-founder of TradeMonster.com, an options and equity brokerage."
"The Credit Suisse analyst also notes that high-frequency trading, which accounts for half of all market activity, has been on the decline since last summer. What’s more, in 2007 Citigroup [C ] alone accounted for 7 percent of all volume in the second half of 2009 before its 10 for 1 reverse split, according to the report."
"The answer may be that after two vicious bear markets in a decade, the average investor simply doesn't trust this market anymore."
(Or maybe with 88 million not employed, fewer people have the expendable money to trade ???)
PS: A weekend report said mutual funds saw huge outflows BUT ETFs saw huge inflows recently.
Mutual funds fight for flows against ETFs
Edited by Rogerdodger, 10 April 2012 - 12:11 PM.
