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What the Real Stocks Bear Market Looks Like
Read More: http://newsdoors.blogspot.com/2013/02/what-real-stocks-bear-market-looks-like.html
It seems pertinent that only the indexes that one can leverage in quantity with futures - the S&P and Nasdaq - have risen over the past half year. Maybe this selectivity is for technical reasons, but there might be another explanation. Institutions, not the public, have driven the rally, and they can borrow billions of dollars from banks to leverage their bets.
The divergent action among the indexes suspiciously fits the circumstance that major investment banks can make a lot of money by buying futures and then committing their own clients' funds to buying stocks that push up those particularly underlying indexes. They could even sell other stocks to make it happen. Employing that strategy would account for the big differences in in the averages over the past half-year.
Read More: http://newsdoors.blogspot.com/2013/02/what-real-stocks-bear-market-looks-like.html


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