The core issues with the Stock Market haven’t gone away. The problem with the elephants dying is the little guys get crushed in a fall-down. Trust level of Wall Street by small investors is sinking, fast.
Things may well be getting ready to go to Hell in a Handbasket on Wall Street…
In Striking Shift, Small Investors Flee Stock Market
Renewed economic uncertainty is testing Americans’ generation-long love affair with the stock market.
Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to theInvestment 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.
Small investors are “losing their appetite for risk,” a Credit Suisse analyst, Doug Cliggott, said in a report to investors on Friday. Read the rest of this entry »
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