Get a Plan and Stop Complaining

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.”


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?

One thought on “Get a Plan and Stop Complaining

  1. Wow, another guy who knows how individual investors feel. Amazing. When he talks about these “individual investors” who exactly is he talking about? Is he talking about himself? His friends? People who have emailed him? Surely he can’t mean ALL individual investors. Every single one? Maybe he means LOSING individual investors. I can’t really see winning individual investors complaining about getting the shaft. Is he saying there are none? Is he saying that the losers out number the winners? Could it be any other way?

    And what’s this I read, the “long term” is now some type of gift bag that used to be handed out to all market participants? Really? Where have I been hiding? I can see the commercial now: Retired folk sitting around on a porch somewhere in middle America looking out across acres of land. One looks calm. The other troubled. Finaly, Mr. Calm says to Mr. Troubled: C’mon, Bob, don’t worry about your short term performance, there’s always “the long term”….

    Fade to black and white…cut to: today and a Mad Max apocalyptic stock market future where all we’re left with is “the short term”. Or worse yet, a stock market suffering from the same ailment as that guy from Momento — the one with only 15 minutes of memory?

    By its very definition isn’t “the long term” many years away? Once again sweeping generalizations stampeed all objectivity. Because, as far as I can see, seems like AAPL has enjoyed a fairly good “long term”. Same with ISRG. Same with a slew of other stocks my charting software is telling me have enjoyed a rocking “long term”.

    Oh, wait, but by “long term” you mean that every single stock in the stock market universe should go up eventually? And forever? Really? (insert Jimmy Fallon’s voice here) Really…? Stocks always go up? Really…?

    Finally, we learn that a meltdown might finally clear the air for John and Jane Q public? What? Is this guy listening to himself at all? His website says he’s been around for 20 years so I’m assuming he was trading in 2007-2008? If market crashes restore the faith and clear the air, then hallelujah John and Jane Q. Public, take off your oxygen masks and break out the check books — it’s time to fund those e*trade accounts again!

    Thanks again for another great thought provoking thread.

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