Investors Still Nervous about Stock Market
November 25, 2009
According to this article from Investors Business Daily, investors are still very skeptical of the equities. In September and October, for example, they pulled out $17 billion from stock market funds and directed the proceeds mainly into bond funds. Year-to-date, $1.91 billion was pulled out of the stock funds.
From a contrarian perspective, this is great news. This means that investors stayed skeptical all the way up during the current rally and chose to either sit on their cash or funnel it to “safe” bond funds (with interest rates near zero, I don’t think bond funds will be safe for long).
The wall of worry is still alive and well.
Entry Filed under: Market Conditions. .
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