Discussion in 'Stock Market' started by Jeremy, Aug 22, 2010.
NYT: Small investors flee market - World news - The New York Times - msnbc.com
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.
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.
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.
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.
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.
There's a difference between homosexuals and gays. Your gay.
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