Friday, May 13, 2016

The Hated #Stock Market Rally

Hedge funds, largely bearish with the majority, have struggled due to a lack of performance. Why pay unbelievable fees to lose money when you can do that all on your own?

The majority's persistent bearishness, a bullish sign (Review of Sentiment), makes the 2009-2016 one of the most hated bull markets in recent history. The majority, frustrated by years of loses or missed gains in an increasingly illiquid market (see chart) and economy, will turn bullish at some point . They'll do it at the worst possible time securing their place as the bagholders of secular moves.

Chart: Avg Monthly Volume S&P 500

Headline: Hedge funds — there are too many of them and most of them are lousy

The uproar against the hedge fund industry has become almost deafening in recent weeks.

There’s going to be a “washout in hedge funds.”

There’s a “lack of talent.”

And those fees that they charge are “unbelievable”!



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.