bull run or mule trot?
there is this running advertisement on tv asking when will the bull run ends. i am wondering where or when did the bull run ever started. all i see is a mule trotting round and round the mill, and the owner flogging furiously. but the mule is trotting to no where. superficially there seems to be a bull run based on the volume traded, and an uptrending stock index. but how real is this? did anyone hear of any punters making big money and buying cars and houses, all thanks to the bull run? why is there no euphoria, no one talking about the stock market or queuing to open trading accounts? actually there are many signs that this is a sick stock market, a market that is dying by the days. first indication is the lack of retail investors. ask any remisiers and they will tell you that their phones hardly ring. commission plummets. and many are thinking of quitting. and now ipos are no longer popular. many have been shelved. the latest, an australian reit could not list due to poor demand and bad market sentiment. how can that be when there is a bull run? how did we come to such a state when ipo listing is no longer viable or attractive? what can happen if things continue this way? more remisiers quitting the industry, leading to broking houses retrenching. more companies start to delist from the stock market for low valuation and trading volume. stock exchange has to raise charges to maintain profitability. broking houses starts more retrenchment of support staff. and the cycle will continue to its natural ending. this is the unique story of a fictitious bull run.