Sunday, August 22, 2010

In Striking Shift, Small Investors Flee Stock Market

A "staggering" 33 billion dollars was withdrawn from domestic stock funds during the first 7 months of 2010. Gee I wonder why?

Do you think its because those who held on, or were trapped in the market for the previous year are more than happy to get out with 65% of their initial investment?

Do you think it's because they now look at the stock market and have even less idea of what moves it than they did before, when we supposedly we had a "market based" system- you know back before the hand of the government so blatantly manipulated every bit of the economy by sheer force?

Or do you think that maybe this 33 billion is actually needed by folks to cover things like car payments, mortgages, and groceries.

It's probably all three reasons, plus about 100 more. But the most important thing that struck me in the linked article was how the NYT referred to 33 billion dollars as a "staggering" number. It's a big number to be sure. But in relation to the numbers that are routinely thrown around these days by the Feds and Wall Street 33 billion hardly seems staggering. I mean it used to raise my eyebrow. But now it's got to be 100 billion before I really start paying attention.

Yup the "new investing normal...


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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of a social media management company.