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Many Retail Investors Still in Cash
Old 03-10-2010, 04:27 AM   #1
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Many Retail Investors Still in Cash

CNNMoney.com Market Report - Mar. 9, 2010

I've seen several comments in the news I read that many retail investors are in bonds and cash, with little in the stock market. A market analyst indicated that it could represents Trillions of $.

The S&P 500 and DOW experienced a turn around over the last year but is still off its high.

I have had several conversations with people at work that have done the timing thing... Pulled their assets out of the stock market back after the market drop started. Some have put their toe back in the market and jumped out because of a little volatility.

Eventually, greed will set in (or fear of missing the run up).... and much of that money will come pouring back in.

Once the jobs picture looks like it is mending... I suspect the flood will be unleashed. Get your money buckets ready.
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Old 03-10-2010, 06:50 AM   #2
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It is the LILO method of market timing (Last In, Last Out)
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Old 03-10-2010, 07:20 AM   #3
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It seems that fund managers are going all in...

The Big Picture » Blog Archive » Fastest Mutual Fund Cash Depletion Since 1991
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Old 03-10-2010, 08:43 AM   #4
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I think people are rightly worried about the current president and congress...

Basically no confidence in our elected leaders or the Wall Street goons that created this mess...

Im in sector etf's that are pretty close to market weight and I just see $$$ going around in circles lately.

I bought EWA, Australian ETF at the bottom of the last pullback and sold it yesterday for some nice gains

Retired people that can't afford to lose money aren't gonna buy stocks unless they get cheap again.

Working folks are probably saving $$$ or paying off debt instead of investing...

I know it would suck to be working right now, with all the unemployed people out there company's can get more work for less pay
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Old 03-10-2010, 08:44 AM   #5
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Follow the herd so you can see what they are doing and then do the opposite.
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Old 03-10-2010, 08:47 AM   #6
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Are you still long oil, summers coming and all my big V8's are gonna be thirsty
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Old 03-10-2010, 09:03 AM   #7
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Are you still long oil, summers coming and all my big V8's are gonna be thirsty
Slightly overweight in energy and natural resources, but not a full-blown long position in oil...
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

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Old 03-10-2010, 09:39 AM   #8
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Me too
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Old 03-10-2010, 09:52 AM   #9
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Quote:
Originally Posted by chinaco
Eventually, greed will set in (or fear of missing the run up).... and much of that money will come pouring back in.
A week ago I went from 11% cash to 8% cash, does that count?

However in my case, I already had enough equity funds for my asset allocation and went to Total Bond Market Index VBMFX. I know that this is not supposed to be a good time to buy bonds but this is for the long term and it seemed like I had been waiting nearly forever.

My cash was making nothing, essentially, so hopefully the dividends will increase my income a little.
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Old 03-10-2010, 10:03 AM   #10
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I think people are rightly worried about the current president and congress...
So you must mean the 46% total return on the S&P 500 since inauguration day.

Or maybe the (31%) total return over the preceding eight year period.
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Old 03-10-2010, 10:30 AM   #11
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Please don't turn this into a political thread. Thanks.
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Old 03-10-2010, 10:34 AM   #12
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Thanks, OP, I finally got off my procrastination mode, and cleaned out my MM account again today, sending it into the S&P index; next step, move some more out of GNMA and sit on it until the market goes farther up.
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Old 03-11-2010, 05:35 PM   #13
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Well I put a little to work this AM

Greedy, looking for some more $$$ for nothing, unfortunately my chicks ain't free
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