"I can distribute more stock on upticks than I can on down"
-E.H. Harriman, railroad man and Wall Street pro.
-E.H. Harriman, railroad man and Wall Street pro.
From CNBC's Net Net:
The strong stock market rally this year is being met with a heightened level of supply, setting up a big bet that retail investors will keep buying what Wall Street is selling.
In the past, that's been a risky wager, with too much supply depressing market prices.
But with the market on its longest streak in more than six years without at least a 5 percent pullback, suppliers are figuring there are many more willing to step in.
New offerings jumped to $13.6 billion last week, the highest of the year and more than five times the previous week's $2.5 billion, according to market research firm TrimTabs.
Total float in the market—or the amount of shares available for purchase—has increased 1.4 percent this year, even though corporate buying has approached five-year highs.
"As long as underwriters are dumping $10 billion per week into this market, it could be tough for stock prices to move much higher," TrimTabs said in an analysis....MORE
