Renewed economic uncertainty is testing Americans’ generation-long love affair with the stock market.
Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.
If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.
This was on first page of New York Times on weekend. Average mom and pop investors are giving up on Wall Street. Which makes me think it is bullish. One of the factor to take in to consideration in your bullish or bearish bias. Obviously I do not base my decisions only on such information. I have a Market Timing model which I follow and has done a good job of keeping me out of bearish moves and getting in to bullish move.