Not only are retail investors retreating from the stock market, but so are the "smartest-guys-in-the-room" quant funds. It appears the smart money lost big in 2008.
http://www.nytimes.com/2010/08/20/business/20quant.html?_r=2&dbk
With fewer retail and institutional participants, any liquidity-induced market rallies will be short-lived and shallow, in my opinion.
Sunday, August 22, 2010
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