People Have Lost Their Faith in the Stock Market

People have lost their faith in the stock market. If the market is up there are doubts about the whole show being rigged. March 2010 has seen a steady rise in the stock market sans any bumps. The bears are angry as to why the stocks should have such fun climbing up when there is so much doubt about the economic recovery; given the situation the market should not be moving at all.

This has led to the conspiracy theory gain credence again. Is it the government plunge-protection-team trying to buoy it up? Are the short term traders trying their sucking tactics again? Or are both of them at the same game? For the last one year this story has been going around.

Joe Saluzzi of Themis Trading in New Jersey’s Chatham has been harping on this theory in 2009. He does not think that the market is being driven by genuine investors. When asked if the market was being manipulated he said, "I don’t know that I would use that world. I couldn’t say someone’s doing something. I can’t prove it." The reverse argument also holds true. It cannot be proved that the market is not being manipulated.

High tech computers are operating their own trading each day based on market shifts occurring by the second. Perhaps there is very little of actual investing.

In 1987 the automated programme made its debut in full force. A few months following the crash in that year the President’s Working Group on Financial Markets was formed comprising of representatives from the Treasury, Federal Reserve, SEC and Commodity Futures Trading Commission. This group soon came to be nicknamed Plunge Protection Team and was expected to act as a new tier in overseeing the market.

But since its inception there have been rumours that the real role of the team was to enter the stage at the time of a crisis and keeps the stocks from drowning. This would be done either with funds coming from the government or by making the Wall Street firms step in on its behest.

The economy of America began to grow from the last six months of 2009. In the present quarter it is expected to increase further. From last August the manufacturing sector has been growing. Inflation has been kept in control. Jobs are vanishing but the retail market has been comparatively strong. The consumers seem to be coming out of hibernation.



Julie Thompson, has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of California. Try to visit ForeclosureWarehouse.com and find all related information about foreclosure.