Comments on: Households save and invest in equities - Stimulus money flows to savings http://www.capital-flow-watch.net/2009/10/03/individual-investors-push-stock-prices-up-in-q2-2009/ Conservative economic commentary from the top-down Tue, 18 Oct 2011 09:51:36 -0400 http://wordpress.org/?v=2.9.1 hourly 1 By: John Schroyhttp://www.capital-flow-watch.net/2009/10/03/individual-investors-push-stock-prices-up-in-q2-2009/#comment-204 John Schroy Wed, 07 Oct 2009 20:39:38 +0000 http://capital-flow-analysis.com/capital-flow-watch/individual-investors-push-stock-prices-up-in-q2-2009.html#comment-204 <p>Well, the flow of fund accounts don't reveal whether individuals are buying for the long or short term --- only the gross amount of the net flows, which in Q2 2009 were quite substantial. The data doesn't give an indication of what kind of investors these are (small time day traders, large speculators, the local investment club, etc.).</p><p>However, the substantial net flows into mutual fund shares ($ 683 billion, annual basis) don't seem to be the type of investment made by day traders.</p><p>Nevertheless, whether in for the long or short term, I would guess that individual investors will probably be tempted to move out of equities or mutual funds if prices get anywhere near pre-Crash levels in the next year or so.</p><p>The wistful comment I hear most often is, "Do you think prices will ever get back to levels of July 2008?" --- or words to that effect.</p> Well, the flow of fund accounts don’t reveal whether individuals are buying for the long or short term — only the gross amount of the net flows, which in Q2 2009 were quite substantial. The data doesn’t give an indication of what kind of investors these are (small time day traders, large speculators, the local investment club, etc.).

However, the substantial net flows into mutual fund shares ($ 683 billion, annual basis) don’t seem to be the type of investment made by day traders.

Nevertheless, whether in for the long or short term, I would guess that individual investors will probably be tempted to move out of equities or mutual funds if prices get anywhere near pre-Crash levels in the next year or so.

The wistful comment I hear most often is, “Do you think prices will ever get back to levels of July 2008?” — or words to that effect.

]]> By: Stocks to buy nowhttp://www.capital-flow-watch.net/2009/10/03/individual-investors-push-stock-prices-up-in-q2-2009/#comment-203 Stocks to buy now Wed, 07 Oct 2009 18:06:17 +0000 http://capital-flow-analysis.com/capital-flow-watch/individual-investors-push-stock-prices-up-in-q2-2009.html#comment-203 <p>I still don't see individuals holding stock anymore. It's a big time casino at this point, so everything has to be taken with a grain of salt for sure.</p> I still don’t see individuals holding stock anymore. It’s a big time casino at this point, so everything has to be taken with a grain of salt for sure.

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