Despite the best start to a year for the S&P in 20 years, and a 25% increase since October 3, retail investors continue to shift money out of stocks and into bonds.
According to the Investment Company Institute, stock funds saw an outflow of $218 million in January on top of a whopping $28.84 billion outflow in December. Meanwhile bond funds posted an inflow of $27.86 billion in January, in addition to a $9.50 billion inflow in December.
And this is despite historically low interest rates and relatively attractive stock valuations.
So what is keeping retail investors out of the stock market? Are they simply awaiting a much-anticipated pullback? Is it continued fear over Europe and China? Or are investors still gun shy after getting burnt in 2008?
Please chime in below!
To read this article on Zacks.com click here.
Zacks Investment Research
