Investors Still Nervous about Stock Market

November 25, 2009 at 4:26 am Leave a comment

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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Blog Author

Leon Shirman's long-term investment philosophy is summarized in his book, “42 Rules for Sensible Investing”, also available from Amazon.


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