Uncertain Markets Lead to Drop in Trading Volumes
Earlier this week the trading volume on the New York Stock Exchange dropped to a new decade low. The 50 day average of trading volume is at a the same level it was in 1999. In that year the economy was generating 2.4 trillion dollars less than it does now.
Why is this happening? After a decade of boom and bust trading cycles, scandals and debt crisis it seems that the average investor has had enough. The wild swings that we have seen recently in the markets can be attributed to the fact that most investment capital is tied up in exchange traded funds. These funds are run by a few and control trillions of dollars. As such, trades are made as a reaction to the headlines. European debt, Iran and a variety of economic reports all contribute to gains and declines that we currently see in the market.
While corporate profits continue to set records there will most certainly be a correction period in the markets within a few months. There are just too many negative trends building up such as the rising costs of fuel and the slowdown of the economy in Europe.
Some of the the best stocks to buy right now will be in companies that pay out solid dividends. Investors may be wary right now, but there are limited options outside of stocks to generate return on capital. Interest rates remain low and will for some time. Many corporations are sitting on records amount of cash after enjoying solid earnings for the past 2 years. Dividends will also become a attractive way of generating positive momentum in their stock price. If an investor can buy shares in a company that pays a 5 to 6% dividend the return will be far better than what they can earn with alternative investments.
Pipeline systems in many countries are very complicated and require a lot of expertise to manage. This is a common feature of many pipeline systems around the world. It does not matter if the product being transported is
Once an economy gets to a certain level of development, they need to depend on their domestic consumers to continue it’s growth. This is not just a story of the US. It is something that all economies must tune into once they get to a certain point. In order for