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Investors have been rushing off the sidelines this year and show no signs of letting up.
So far, they've pumped more than $60 billion into mutual funds and ETFs that hold U.S. stocks, according to research firm TrimTabs.
That's already more than any full calendar year since 2004. And if the pace keeps up, this year's inflow would be the largest since 2000.
Investors dove right in at the start of the year, pouring more than $30 billion into U.S. stocks in January, but inflows in February were barely positive.
Just who are the invesetors? Are they the same investors that were in the market 10 years ago. I don't think so. I think what you are saying are investors, are actually "institutional investors".
Where is the money coming from that is flowing into stocks?
Well with the Fed buyng billions and billions worth of toxic mortgages every month for full market value, many institutional investors are reinvesting some of that winfall into the market.
Does that create a situation where stock prices are being driven more by money needing to find a home than actual profits and valuations? Yep. Is is sustainable? Doubtful.
fact is if my contributions (buys) are only when the stock market is at 14k...what happens when dow 6k happens???
yet if I BOOST the investment when dow 6k...makes for a nice penny when dow 14k happens
((think of all the spin that was happening in 09, and they were saying how grandma just lost 50% of their savings (meanwhile a lie since grandma was investing since the dow was at 1500)))))
Are you not aware of QE infinity ? $85 billion a month is pumped into the system by the Fed Reserve and there's no end date.
Don't be so sure of that. Read the individual fed prez minutes & opinions. Most are just itching for unemployment to get solidly below 7.25%, so they can filibuster a stop, and raise rates. But this is just from Wed.:
Then, the account of the latest deliberations of the Fed's open market committee – the body responsible for setting policy – revealed that some members think the pace of monetary stimulus should be slowed down. One member thought the reduction in asset purchases – the Fed buys $40bn (£26.1bn) of mortgage-backed securities and $45bn of Treasury bills each month – should happen immediately. A "few others" thought the Fed should start easing back in the middle of the year and end purchases by the end of the year.
While they remained sharply divided on how long their bond purchases should last, the minutes nonetheless suggested they were nearing a decision to start winding them down, with "several" policymakers expecting to halt the buying altogether by the end of the year.
...
Of the 12 officials who have a vote on monetary policy this year, "a few" expected to taper the purchases around midyear and to end them later this year, the minutes showed.
"Several others thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end," the minutes said.
When the average investor is rushing into the market it's time to start looking for an exit. All these people who're jumping in now thinking they're going to ride the wave are just setting themselves up to be the next sheeple to be fleeced when it falls.
I'm reminded of the tech boom with this market. Nothing but air driving it which will have to end at some point.
The minute QE stops and/or interest rates rise be prepared to put on a helmet as the bricks that were stacked up will start falling rapidly due to lack of real mortar (growth,production etc) to hold 'em up. I'm not predicting a huge crash BUT fully expect a fall back to where the solid wall exists.
When the average investor is rushing into the market it's time to start looking for an exit. All these people who're jumping in now thinking they're going to ride the wave are just setting themselves up to be the next sheeple to be fleeced when it falls.
I'm reminded of the tech boom with this market. Nothing but air driving it which will have to end at some point.
The minute QE stops and/or interest rates rise be prepared to put on a helmet as the bricks that were stacked up will start falling rapidly due to lack of real mortar (growth,production etc) to hold 'em up. I'm not predicting a huge crash BUT fully expect a fall back to where the solid wall exists.
Big money usually leaves when small money pours in. I learned that one a long time ago.
When everyone is buying you should be selling and vice versa.
Insider selling to buying hit a 50:1 ratio the beginning of March..a record.
Just who are the invesetors? Are they the same investors that were in the market 10 years ago. I don't think so. I think what you are saying are investors, are actually "institutional investors".
As always, they are institutional and individual investors.
Just saying. So, before the crash, you invested less, and after it, you invested more. That's cool.
Quote:
fact is if my contributions (buys) are only when the stock market is at 14k...what happens when dow 6k happens???
yet if I BOOST the investment when dow 6k...makes for a nice penny when dow 14k happens
Sure. Some people invest as much as they can no matter what the DOW is, but if you awere investing less, then 2009 would have been a good time to boost it.
Quote:
((think of all the spin that was happening in 09, and they were saying how grandma just lost 50% of their savings (meanwhile a lie since grandma was investing since the dow was at 1500)))))
Well, if gramdma had 300 000 in 401K, and t fell to 150 000, then she lost 50%, and it would have to increase 100% to get back to where she was before the crash. Most 401Ks are up 120% since 2009.
When the average investor is rushing into the market it's time to start looking for an exit. All these people who're jumping in now thinking they're going to ride the wave are just setting themselves up to be the next sheeple to be fleeced when it falls.
I'm reminded of the tech boom with this market. Nothing but air driving it which will have to end at some point.
The minute QE stops and/or interest rates rise be prepared to put on a helmet as the bricks that were stacked up will start falling rapidly due to lack of real mortar (growth,production etc) to hold 'em up. I'm not predicting a huge crash BUT fully expect a fall back to where the solid wall exists.
It will come down eventually as that is the nature of the beast, but I think there is still a lot of money on the sidelines, which will go in before it comes down. A lot of people here in CD have been saying "get out" since the DOW hit 9K, and if they followed their own advice, then they missed out.
It will come down eventually as that is the nature of the beast, but I think there is still a lot of money on the sidelines, which will go in before it comes down. A lot of people here in CD have been saying "get out" since the DOW hit 9K, and if they followed their own advice, then they missed out.
"Get out" doesn't necessarily mean to go cash.
Sell and buy back and realize your profit.
Or sell enough to get back your initial investment.
Read enough articles to learn how big money make their plays and ride their coattails.
Profits "on paper" don't mean much when the market drops.
The majority of Americans just follow the herd and jump in when prices are high.
These would be the same ones that panic and sell when prices drop.
You don't want to be one of these types of investors.
You get a much better, more informed debate about Wall Street investing/trading over in the Economics forum then here.
"Get out" doesn't necessarily mean to go cash.
Sell and buy back and realize your profit.
Or sell enough to get back your initial investment.
Read enough articles to learn how big money make their plays and ride their coattails.
Profits "on paper" don't mean much when the market drops.
The majority of Americans just follow the herd and jump in when prices are high.
These would be the same ones that panic and sell when prices drop.
Like I said, a lot of people followed that advice when DOW was at 9K. Are they realizing a profit now? No, they missed out on another 6000 points. No one knows when an adjustments comes, and those who sold too soon will fail to maximize their profits. Of course it is never a bad idea to take your profits and invest in something else, like real estate. These are desicions everyone needs to make for themselves. You do what you think is best for you. Your advice of selling, with hopes of an imminent crash (trying to time the market) is usually a fairly bad idea.
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