- the behavior of retail investors;
- why the market's recent response to acquisitions is a positive; and
- Goldman's response to the infamous New York Times op-ed.
Is the Retail Investor Back? Posted at 6:44 p.m. EDT on Thursday, March 22. Is the retail investor back, or not? The other day I propounded the notion that quintessential retail stocks, such as Apple ( AAPL), Panera Bread ( PNRA) and Chipotle Mexican Grill ( CMG) keep running, and I have to believe it is because of individuals buying stocks. But the mutual fund outflows were also pretty staggering -- about $2.8 billion in the data released today. That would seem to indicate my thesis might be wrong. Plus, my friend Bob Pisani from the floor made it really clear that the low volume is further confirmation that there really isn't much retail investing to speak of. > > Bull or Bear? Vote in Our Poll But what if we are all right? What if individuals have stopped caring for mutual funds -- the love affair over because of poor performance -- and they have decided to concentrate on buying actual stocks? Is that so far-fetched? I haven't seen any other explanation for what doesn't seem to me to be mutual fund buying. Take Apple. We know the mutual funds are underinvested in the name. We have had exhaustive studies on the issue. Doesn't that mean individuals are buying it? Doesn't that mean people think they can do better than the managers themselves, (which is something I wholeheartedly agree with)? I think that stocks may be a shrinking asset class, but that individual stocks are actually being bought if the story is good and the product or service is loved. Yep, this is an "out there" thesis, but unless someone has a better one, it's mine and I am sticking with it. Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.
The Deal's the Thing Posted at 3:03 p.m. EDT on Wednesday, March 21. Nothing like a market that instantly rewards companies that acquire other companies. Watson Pharma's ( WPI) going crazy today because it is buying Actavis, a generic-drug maker that was off everybody's radar screen.