Small investors flee stock markets

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.

http://www.msnbc.msn.com/id/38803088/ns/world_news-the_new_york_times


I'd be interested in data as to what has happened to this money whether it has flowed to bonds, has been cashed in to pay bills, went to foreign markets, etc. etc. All are listed as possibilities but without supporting data.

Their one example of a "small investor" was a guy who had $1.1 million in investments which is hardly typical.

A TED talk, tangentially related, on why small investors pull out of bear markets.

http://www.ted.com/talks/laurie_santos.html

I think investors would pull out even faster except inflation is so low that bonds and banks pay such low nominal rates that people are willing to take more risk than they normally would in the hopes of getting some returns. Especially before the inflation rises, I would expect that this trend would continue.

Originally posted by no1marauder
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 i of a "small investor" was a guy who had $1.1 million in investments which is hardly typical.

If these people were smart they would be investing in emergency gardens, bottled water, a weapon, and some kind of commodity that will never loose its value......other than a house that is. Oh yea, and a bunker so when Iran sneaks an untracable WMD into the US or Europe you have someplace to go. Or I suppose you can stand on top of a bridge some where waving your hands for the federal government to come save you.

Originally posted by no1marauder
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 i ...[text shortened]... of a "small investor" was a guy who had $1.1 million in investments which is hardly typical.

http://news.yahoo.com/s/ap/20100822/ap_on_bi_co_ne/us_wall_street_week_ahead

Bond bubble fear returns as investors flee stocks

I can only hope they flee by jumping off cliffs.

Originally posted by shavixmir
I can only hope they flee by jumping off cliffs.

Why not set an example yourself and rid us of the most decadent individual posting on this forum.