The following article from CNNMoney puts forth a theory that investors have missed the latest stock market rally. Really? A rally based on HFT and government POMO policy? No volume and reduced earnings? Or maybe people know a house of cards is still a house of cards.
NEW YORK (CNNMoney) — U.S. stocks have had a nice rally since the start of the summer, recently hitting their highest levels since December 2007. But individual investors are once again watching all the action from the sidelines.
As the S&P 500 gained nearly 10% from June through August, individual investors yanked almost $40 billion from the U.S. stock market, according to data from EPFR Global, a Boston-based firm that tracks fund flows for both mutual funds and exchange traded funds.
What’s keeping them away? Experts say the steady exodus can be attributed to a change in investing behavior on the part of Baby Boomers, who represent the most sizable group among retail investors.