Nomura has released a report highlighting the stocks with the greatest monthly turnover ratio (the ratio of trading value to market cap). And while overall turnover ratio has increased materially in the US, while not so much in other markets, once again making the case that US stock markets have become an exclusive hot potato gambling center, the monthly turnover of some stocks is staggering:
- AIG: 806%
- Las Vegas Sands: 172%
- Citigroup: 69%
- Apple: 38.2%
- GE: 24%
- JPMorgan: 18%
The full list of high turnover stocks presented below:
The overall increase in high turnover is not just limited to smaller cap stocks (or in the case of AIG, nationalized entities). Compare the turnover of US stocks to all other names in the world: the casino nature of US stock markets is undeniable.
Another way to visualize the discrepancy between the US and the rest of the world is in the below chart. Even though US stocks have halved their turnover ratio from a staggering 40% in November 2008, the current reading of 21% is still roughly double the 12% average for European, Japanese and Chinese stocks.
As the game of domestic stocks hot potato continues unabated, the only real question is what will the event be to force sellers to finally emerge. However as Nic Lenoir warned earlier don't expect any such action on continuing low volume days like today, where the only relevant trade is ongoing pummelling of the dollar driving stocks grotesquely higher as the US middle class continues to lose purchasing power. One hopes that everyone now has an E-trade account and all they do each and every day is invest in highly overvalued stocks which they in turn hope to pass to yet another greater fool.