This is made plainest when we consider how long the average stock is held by the average stock-holder. Guess what, that’s just 22 seconds…
Investors are advised to invest for the long-term, yet in the US the average share holding lasts just 22 seconds.
The consensus suggest that investors dabbling shares should be in it for the long-term, yet the average holding is less than a minute thanks to computer driven ‘high frequency’ trading. Michael Hudson, a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund recently said: “Take any stock in the United States. The average time in which you hold a stock is – it’s gone up from 20 seconds to 22 seconds in the last year. “Most trades are computerised. Most trades are short-term. The average foreign currency investment lasts – it’s up now to 30 seconds, up from 28 seconds last month. The financial sector is short term, yet they talk as if they’re long term.” Computerised high-frequency trading, which makes up about 70pc of all trades, is the subject of the book, The Fear Index, published late last year.
Greed driven by the quest for instant gratification. You don’t have to be a stock broker to see it. American’s are less able to commit themselves to anything that doesn’t deliver instant dividends. Relationships, religion, family, job, and everything else are subject to the pulsations of greed and instant satisfaction. Perversion.
It’s why people would rather take a diet pill than cut back on food and increase their exercise. It’s why if churches don’t sprout up overnight, the masses run to another which may. Corruption.