I was just looking at the Dow Jones historical chart and noticed how trading volume started to increase after the 1987 crash all the way up to the GFC low in 2008. You can then see the huge decline in volume since the GFC. I have no doubt that the rise was due to high frequency trading algorithms. Does the decline in market volume mean that most of the rise in the Dow since the GFC has been made off-market in dark pools? Makes you wonder. Maybe there is another explanation for it. Many of the retail investors that were shaken out of the market as a result of the GFC never returned. There has been a rapid rise in the popularity of Exchange-Traded Funds. Also a shift form brokerage to advisory firms.
Click on chart to enlarge
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