Volume in the Dow and other indexes has been falling for some time. For over a year I’ve been trying to get top economists to comment or discuss this issue and it remains ignored. Last week CNN finally produced an article on this.
Historically there is only one other time when volume diminished and of course that was in the 1930s. This is an ominous trend which took decades to overcome the last time.
I feel that so long as volume is tending lower it will be difficult to expect positive returns in “buy and hold” portfolios for at least an intermediate time period.