55 Bln Greenbacks flowed into the US stock market in January, the highest monthly intake on record!
Retail speculators have been spooked of investing into the stock market since the 2008 crash. However they're getting more and more involved after witnessing the continuing rise of the stock markets with several feeling they are losing out on heavier returns thru the markets.
The issue is, is it to late to jump on the rally? Let's be honest, the large gains have just been seen by those brave enough to jump back in, in 2008. The million dollar question is, will the rise continue or will the retail financier get left holding the bag?
Institutional investors made use of the reasonable prices and added to their positions throughout , so any person with a pension scheme would have benefited from this.
Retail speculators feel that they have missed out and are sick of sitting on the side lines while everyone else cashes in, while they stay invested in low risk, low yielding investments.
As the proverb goes "fortune favors the bold" and the ones that were have profited well from it. However making an attempt to play catch up because you feel you have missed out is a particularly perilous mental condition.
Having mentioned that it definitely appears that the retail financier is more hopeful on stocks and not frightened of the markets collapsing. It remains to be seen irrespective of whether or not they will truly put their money at risk, but the signs look to be there.
Reputedly over 52% of retail investors are bullish on the markets which is the highest reading since the start of 2011. This is accompanied by the Wall Street fear gauge having its lowest reading since the middle 2007.
Since 2008 retail investors have been pulling their money out of the stock market as it has risen. With a sense of relief that they had not lost everything and likely paying off other liabilities or losses with the gains. Now it looks the cash is coming into the market rather than just flowing out, with over 11 bill into stock mutual funds in just two weeks, the highest since the start of this century!
Some of the brokers are reporting a serious increase in the amount of trades being placed daily by retail financiers, another encouraging sign. This joined with the upswing in the USA economy is excellent news for speculators looking for larger returns on their money.
It's incredible to suspect that the American stock market has risen by more 120% since its 2009 lows giving investors more reason to become involved. Couple this with the dodging of the fiscal cliff and the USA defaulting, the retail investor is feeling confident to put their money to work again in the stock markets.
It is going to be interesting to see the following chapter of this recovery and whether or not the retail investor actually is coming back into the market at the right time...
Retail speculators have been spooked of investing into the stock market since the 2008 crash. However they're getting more and more involved after witnessing the continuing rise of the stock markets with several feeling they are losing out on heavier returns thru the markets.
The issue is, is it to late to jump on the rally? Let's be honest, the large gains have just been seen by those brave enough to jump back in, in 2008. The million dollar question is, will the rise continue or will the retail financier get left holding the bag?
Institutional investors made use of the reasonable prices and added to their positions throughout , so any person with a pension scheme would have benefited from this.
Retail speculators feel that they have missed out and are sick of sitting on the side lines while everyone else cashes in, while they stay invested in low risk, low yielding investments.
As the proverb goes "fortune favors the bold" and the ones that were have profited well from it. However making an attempt to play catch up because you feel you have missed out is a particularly perilous mental condition.
Having mentioned that it definitely appears that the retail financier is more hopeful on stocks and not frightened of the markets collapsing. It remains to be seen irrespective of whether or not they will truly put their money at risk, but the signs look to be there.
Reputedly over 52% of retail investors are bullish on the markets which is the highest reading since the start of 2011. This is accompanied by the Wall Street fear gauge having its lowest reading since the middle 2007.
Since 2008 retail investors have been pulling their money out of the stock market as it has risen. With a sense of relief that they had not lost everything and likely paying off other liabilities or losses with the gains. Now it looks the cash is coming into the market rather than just flowing out, with over 11 bill into stock mutual funds in just two weeks, the highest since the start of this century!
Some of the brokers are reporting a serious increase in the amount of trades being placed daily by retail financiers, another encouraging sign. This joined with the upswing in the USA economy is excellent news for speculators looking for larger returns on their money.
It's incredible to suspect that the American stock market has risen by more 120% since its 2009 lows giving investors more reason to become involved. Couple this with the dodging of the fiscal cliff and the USA defaulting, the retail investor is feeling confident to put their money to work again in the stock markets.
It is going to be interesting to see the following chapter of this recovery and whether or not the retail investor actually is coming back into the market at the right time...
About the Author:
Perhapst you are a fund manager or simply interested in the finacial markets, J W Davis offers his opinion of the stock markets and economic news from a technical and fundamental position. Click here for information that may be of interest - discussing pensions, investing, wealth building and more click here.