Backed by the Big Boys
John Reese submits:
It’s no secret that individual investors have been taking big chunks of money out of stocks since the market turned downward in late April — according to the Investment Company Institute, investors removed a net of more than $46 billion from U.S. equity mutual funds from the beginning of May through mid-August. (Mutual fund flows serve as a pretty good proxy for individual investors; at the end of 2009, more than 91% of U.S. equity mutual fund assets belonged to individual investors, according to ICI.)
Interestingly, however, individual investors as a group weren’t even all that keen on stocks during the big rally that began in March 2009. In fact, investors collectively were net sellers of U.S. equity funds from the beginning of April 2009 through April 2010, pulling a net of about $6.8 billion from the funds, according to ICI’s data. During the same period, the S&P 500 was gaining almost 50%.
Investing, Long Term Investment, stock market | admin September 3, 2010
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