The professional investment professional community is changing its opinion on the U.S. stock markets now.
In the last two weeks, the stock market alarm bell has gone off for many of the largest money managers. Their public message is that the stock market has turned into a speculative bet for traders only.
You have to realize that public statements from anyone who manages money for a living are filled with self-promotion. Professional money managers never make public statements until after they have already made their private stock market bets.
The prices of stocks are always subject to the laws of supply and demand. The forces of supply and demand are always subject to the public opinion of individual stock market investors.
The public opinion of stock market investors is controlled by those investors who have the most money to invest.
If I buy or sell $1000 of stock, I will not have much of an effect on the price of that stock. If a large institutional investor buys or sells $10,000,000 of that same stock, the stock is sure to move one way or another.
Right now, the large institutional investors are wary of stock prices. Institutional investors are selling their stocks to smaller individual investors.
Adjust your stock market outlook accordingly now. Large stock market investors can move the stock markets much more than you or I can.
Ric Lager
Lager & Company, Inc.
