Seeking Alpha

The stock market is shrinking. The number of companies that individual investors can buy shares...

The stock market is shrinking. The number of companies that individual investors can buy shares in is in a major decline, a fall that’s been years in the making but accelerating this year with its record-breaking start to takeovers, mergers and buyouts. The average investor has steadily fewer choices, both broadly and within specific industries, when it comes to picking individual stocks.
Comments (6)
  • The ETF selection is now quite diverse and broad....what til 401k's introduce ETF's
    29 Mar 2013, 08:53 AM Reply Like
  • less companies and less stock available through buy backs

     

    both create scarcity

     

    the first point has to tell you the market is undervalued.

     

    P
    29 Mar 2013, 09:13 AM Reply Like
  • You would think IPO's would become more popular. They probably would be if they were handled equitably.
    29 Mar 2013, 09:29 AM Reply Like
  • Prof. Bernanke's cheap money is the fuel with which the LBO (aka "private equity") firms buy up companies using primarily debt. Their nominal investment returns are very high, having been magnified by the debt leverage. These high nominal returns attract capital from the mega investors, pension and endowment funds, who are desperate for returns in a zero-interest world, and thus you have a vicious circle: fewer publicly traded equities, more debt, more layoffs and jobs outsourced overseas, more hedge and LBO fund tycoons buying more trophy properties, bigger yachts, etc. For the rest of us, the best course is to take advantage of the globalization of equity markets and the information available on the internet to diversify globally.
    29 Mar 2013, 09:58 AM Reply Like
  • So what you are saying is buy BX? If you can't beat em, join em!
    29 Mar 2013, 12:10 PM Reply Like
  • Fear not, investment banks will have a fresh supply of dogs coming to market in the not too distant future. Corporations and private equity firms will continue to spinoff\IPO divisions\companies. MLP's will continue to flood the market looking for capital.
    30 Mar 2013, 01:16 AM Reply Like
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