Small investors flee stock markets.

[Jeremy]

NYT: Small investors flee market - World news - The New York Times - msnbc.com

Renewed economic uncertainty is testing Americans’ generation-long love affair with the stock market.

Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.

If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.

Small investors are “losing their appetite for risk,” a Credit Suisse analyst, Doug Cliggott, said in a report to investors on Friday.

 

[asterism]

Small investors are simply realizing that they have been duped. It's not a matter of risk, it's a matter of seeing how there is no way to actually beat a game that is rigged against them.

I suppose for some the answer is more government regulation on what they can and cannot do with their retirement funds. I wonder how that's going to work out.

 

[Toro]

Small investors are pouring into bond funds. They are going to get killed when interest rates reverse, as they inevitably will.

 

[asterism]

Small investors are pouring into bond funds. They are going to get killed when interest rates reverse, as they inevitably will.

Yup.

 

[william the wie]

Small investors are pouring into bond funds. They are going to get killed when interest rates reverse, as they inevitably will.

Had to thank you instead of rep you. Almost absolute certainty for munis, high probability for corporates and probable for treasuries over the next five years but reduced interest rates causing a future crash in developing countries in a repeat of 91-98 is the wild card. As the best of the worst there is a significant probability that treasuries might continue to hold value until 2016 or so as a safe haven. I wouldn't bet on it but I also wouldn't bet against it. Shorting munis is a much safer proposition.

 

[KissMy]

The other cause of this phenomenon is the largest group of investors are Baby Boomers who are retiring. They are pulling out money to live on or buy that retirement dream home on the lake. They also have a low risk tolerance since they are at the end of their productive years & have no way to make-up for a loss. Their main goal now is capital preservation.

This is going to weigh heavily on the markets for the next 15 years.

 

[iamwhatiseem]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

 

[topspin]

I just researched how to benefit from the bond bubble bursting. Small investors always get stampeded by the pro's in large numbers.

 

[iamwhatiseem]

I just researched how to benefit from the bond bubble bursting. Small investors always get stampeded by the pro's in large numbers.

No they don't.
Pros stampede over people who don't pay attention to the markets.
There is a difference.

 

[topspin]

There's a difference between homosexuals and gays. Your gay.

 

[saveliberty]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

You can lose that all by lunch tomorrow.

 

[asterism]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

What's your fee to dish the details?

 

[KissMy]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

What's your fee to dish the details?

Download RSS reader & add feeds according to your investment taste. Many times you will find that macro economics & Government Politics move individual stock prices more than the micro business financial statement fundamentals. Keep one eye on global & government issues & the other eye on the business financials. It will take years of study to figure out what affects each stocks value the most. Study past history to see the future.

 

[asterism]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

What's your fee to dish the details?

Download RSS reader & add feeds according to your investment taste. Many times you will find that macro economics & Government Politics move individual stock prices more than the micro business financial statement fundamentals. Keep one eye on global & government issues & the other eye on the business financials. It will take years of study to figure out what affects each stocks value the most. Study past history to see the future.

Ah. Trading on technicals. Best of luck, but that's not acceptable risk for me. Good luck to you and I hope you take and actually bank the gains you get. Really though, best of luck to you. Any reward you get you've earned by taking the risk.

 

[Toro]

Ah. Trading on technicals. Best of luck, but that's not acceptable risk for me. Good luck to you and I hope you take and actually bank the gains you get. Really though, best of luck to you. Any reward you get you've earned by taking the risk.

When I invest, I invest on the fundamentals.

When I trade, I trade mainly on the technicals.

 

[william the wie]

Ah. Trading on technicals. Best of luck, but that's not acceptable risk for me. Good luck to you and I hope you take and actually bank the gains you get. Really though, best of luck to you. Any reward you get you've earned by taking the risk.

When I invest, I invest on the fundamentals.

When I trade, I trade mainly on the technicals.

Question how widespread is the knowledge of the September (back to school expenses show up as September net stock sells) effect? Could the current trend simply be a matter of greater information being available to all and small investors just getting out of the way of the annual trainwreck early?

 

[iamwhatiseem]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

You can lose that all by lunch tomorrow.

no because I have been 100% out since April

 

[iamwhatiseem]

My 3 year return is 24.9%.
I am a small investor.
You just have to pay attention.

Faithfully throwing money into a 401k for example, and never looking at it is a guaranteed disappointment for the future.
Listening to MSM talking head "economic experts" is like taking advice about how to quit smoking from a Marlboro vendor.

It's all about the sources, and paying attention.

What's your fee to dish the details?

Well I have a group of about 30 friends and colleagues who give and receive information worth noting.

For instance look at this puppy...CGX (Graphics)
I cannot tell you why it is good, but it is good.

 

[iamwhatiseem]

There's a difference between homosexuals and gays. Your gay.

There is a difference between people who can debate intelligently and those that must revert to throwing rocks when they don't have the faculties to do otherwise.
You are the one with rocks in your pocket.

 

[Toro]

Ah. Trading on technicals. Best of luck, but that's not acceptable risk for me. Good luck to you and I hope you take and actually bank the gains you get. Really though, best of luck to you. Any reward you get you've earned by taking the risk.

When I invest, I invest on the fundamentals.

When I trade, I trade mainly on the technicals.

Question how widespread is the knowledge of the September (back to school expenses show up as September net stock sells) effect? Could the current trend simply be a matter of greater information being available to all and small investors just getting out of the way of the annual trainwreck early?

I don't know.

I doubt that small investors are aware of the September Effect. I think it just happens. And I don't trade it, but I'm aware of it.

Small investors have pulled money out of stocks for 16 months in a row.