Individual investors still on sidelines (funds, sell, investment, returns)

[slackjaw]

Small investors shun stock funds -- and miss the big rally. - Yahoo! Finance (http://finance.yahoo.com/news/Small-investors-shun-stock-cnnm-763445713.html;_ylt=AszqPnNnYKkVGevTKgebZQO7YWsA;_ ylu=X3oDMTE2ZDFwc2E3BHBvcwMxMQRzZWMDdG9wU3Rvcmllcw RzbGsDc21hbGxpbnZlc3Rv?x=0&sec=topStories&pos=8&as set=&ccode= - broken link)

Individual investors are boycotting the stock market, while hedge funds have regained their swagger after wandering in the wilderness.

The S&P 500 rose over 10% in July, August and September. But individual investors, those who invest primarily through mutual funds, were net sellers of stocks during every week of the third quarter. An estimated $42 billion flowed out of mutual funds that invest in U.S. stocks during the quarter, according to data from the Investment Company Institute. There hasn't been as big of gain in the stock market in such a short period of time without net inflows into stock funds and equity exchange traded funds in a quarter century, research from LPL Financial showed Tuesday.

The worst part is that a lot of 'em probably panicked and sold after drops, then keep missing the chance to scoop it right back up.

[mathjak107]

i always bring this fact up.. most small investors are invested wrong for their risk tolerance regardless of age . most small investors think they are smarter then everyone else and they are going to time things missing the drops and get back in and catch the gains......bull! your not smarter ..... the inflows and out flows of cash from these funds that morningstar tracks show most small investors mostly get crappy returns about 1/3 of what that fund particular fund gets over long periods of time.

[Oildog]

Yes, but I've been trying to rebuild the warchest so I can go on a spending spree. I'm starting to get an itch...