Thursday's Washington Post has an interesting article about small investors sitting on the sidelines during this equity market rally. Ain't nothing like buying high and selling low.
http://www.washingtonpost.com/wp-dyn/co ... id=topnews
johnnyInvestors in mutual funds, which are among the most common ways for individuals to participate in the stock market, pulled more than $205 billion out of stock funds between September 2008, when equities plunged, to the end of March, when they began their rally, according to data from the Investment Company Institute. During the same period, small investors sought the safety of cash, pouring $357 billion into money-market funds.
In contrast, only $56 billion returned to stock funds between April and the end of August, the most recent date for which data are available. Money-market-fund levels remained high.
"This market rise certainly is not being driven by mutual fund investors," said Brian Reid, the ICI's chief economist. "Mutual fund flows are not causing this run-up, and I would think that probably carries over for retail investors in general."
"This is not a contest about popularity." (Gen. William T. Sherman)