Here’s an interesting factoid trend, showing how the “average holding period for a stock” has declined over time. It comes courtesy of Yes! magazine:
In 1945: 4 years
In 2000: 2 months
In 2011: 22 seconds
Quite dramatic, isn’t it? The time between buying a stock and selling is 22 seconds. On average! Which also implies that many such holding periods were much, much less than 22 seconds, and no doubt less than 1 second.
Also without a doubt, computerized program trading is responsible for this acceleration, and the average human investor is left in the dust.
The question becomes, as always : Cui bono?