Saturday, March 9

Skepticism high amid the market rally

The confidence of investors in shares despite market remains shaky relentless prevailing trend records.

Investors lack confidence in the stock market during this four-year rally to record highs can be found in two data points: to finance flows and volumes.

From 2008 to 2012 crack private investors around 153 billion $ US equity funds and exchange traded funds, according to data from investment Fund Tracker Lipper, while much, put that cash in the bond market to work. Recently have MOM and pop started diving her toes back into shares.

Meanwhile, the equity has been trading in decline for years. It reached in the spring of 2009, right, as the market of its financial crisis lows hit was. Despite a few blips higher here and there (i.e., summer 2011) the trading volume has been low running.

Both developments show crumbling confidence in stocks despite the market's relentless prevailing trend records. The volatile swings attached to the housing and the tech booms and busts translated in the past 12 years in a broader loss of confidence in the stock market. Recently crash, Facebook (FB) IPO debacle and the trade null and void, which should sharply brokerage firm Knight Capital Group have made the May 2010 skeptical flash people compared to the way, the markets work.

Only recently private investors back to stocks, the little guy has started "buy high." Although the concern with the market is record highs, could potentially

Investors poured $34.2 billion to equities funds and ETFs in the four weeks through Jan. 30, its biggest four-week inflow of cash since 1996, according to Lipper. The net is more than the pick-up for all 2012.

For the week end February 27 was about 800 million $ injected into old fashion US of equity fund, a proxy for individual investor relations activities. Tagged an eighth straight week of inflows, the longest routes since March 2011, according to Lipper.

But as money constantly was moving into mutual funds this year, inflows into Exchange traded funds have initially after a strong year of beginning of show.

That could may be explained by the fact that ETFs will often attract a high dose of "hot" money, a - and flows of traders and hedge funds. However, mutual funds, receive more of MOM and pop.

Investors $3.4 billion from domestic ETFs last week data withdrew, Lipper says.

Meanwhile, the volume of trade remains still anemic. This year New York Stock Exchange, average daily trading volume is approximately 3.6 billion shares, according to the WSJ market data group. Only 3.4 billion shares hand changed in NYSE Composite volume on Monday.

Indications are that the little guy is coming back to stocks pick up. With the Dow to new highs is the question of whether MOM and pop too late to the party arrived.

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