In Striking Shift, Small Investors Flee Stock Market

The small investor, contrary to suggestions from the media, is notoriously bad at market timing. As market investor flee stocks for the safety of bonds, the bond market has become extremely unbalanced. That is, inflows from the public have been heavily faded by connected money.

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

Flight to SafetyInvestors 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.

Source: nytimes.com