Retail Investors are in This Market

Retail Investors are in This Market

$DIA, $SPY, $QQQ, $RUTX

Money market fund assets increased for a 10th week running to their highest mark since early Y 2010, as investors further raised their cash pile due to recent market volatility, a report recently released showed.

Assets of money market funds, which are seen as nearly as safe as bank accounts, rose substantially to the week ended 8 February, as money fund assets surpassed $3-T since the week ended 9 March 2010, according to the Money Fund Report published by iMoneyNet.

The steadiness of cash can be a comfort when markets are heaving, but it has its own risks.

The biggest risk is being too conservative. And managed money is not chasing this Bull. It is sidelined thus, having missed the best January in 30 years.

An investor planning to retire decades in the future would likely get much, much higher returns from stocks than cash, which is only just starting to match the rate of inflation.

Even government bonds, which carry the risk of falling prices if interest rates rise, would likely return more because they have higher yields.

The savvy retail investor is in the market now.

Have a terrific weekend.

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Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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