Retail Piles In To Stocks As Pros Pile Out
Jul 14, 2014 12:04:42 #
As Bloomberg reports,
Individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. About $100 billion has been added to equity mutual funds and exchange-traded funds in the past year, 10 times more than the previous 12 months, according to data compiled by Bloomberg and the Investment Company Institute.
While the strategists have a mixed record of being right, history shows the bull market has already lasted longer than average and individuals tend to pile in at the end of the rally.
Professional investors, such as Nick Skiming of Ashburton Ltd., say that individuals investors are attracted to stocks after seeing others getting rich from a big rally, a time when equities are usually overpriced. The bursting of the technology bubble in March 2000 was marked by mutual funds absorbing a record $102 billion in the first quarter.
As institutional investors, were always concerned when the retail investor is actually arriving in the market, Skiming, who helps manage $10 billion at Ashburton, said by telephone from Jersey, the Channel Islands. The retail investor arrives when they can only see blue skies.
But of course, there are plenty that need to earn their commish and will keep talking...
Individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. About $100 billion has been added to equity mutual funds and exchange-traded funds in the past year, 10 times more than the previous 12 months, according to data compiled by Bloomberg and the Investment Company Institute.
While the strategists have a mixed record of being right, history shows the bull market has already lasted longer than average and individuals tend to pile in at the end of the rally.
Professional investors, such as Nick Skiming of Ashburton Ltd., say that individuals investors are attracted to stocks after seeing others getting rich from a big rally, a time when equities are usually overpriced. The bursting of the technology bubble in March 2000 was marked by mutual funds absorbing a record $102 billion in the first quarter.
As institutional investors, were always concerned when the retail investor is actually arriving in the market, Skiming, who helps manage $10 billion at Ashburton, said by telephone from Jersey, the Channel Islands. The retail investor arrives when they can only see blue skies.
But of course, there are plenty that need to earn their commish and will keep talking...
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