What's bringing Retail Investors Back into Stocks? - Real Time Insight

By Zacks.com January 31, 2013, 02:37:01 PM EDT

It appears that the retail investors are finally warming up to stocks. Per data from Lipper, U.S. stock mutual funds had inflows of $6.8 billion in the first three weeks of 2013-largest inflow since 2001.

Investors breathed a sigh of relief when the two parties finally managed to arrive at a deal to avoid the fiscal cliff. Further the earnings season so far has been better-than-expected and the economic picture has generally been improving.

At the same time, bond yields have started creeping up and many investors fear about that the losses on the bond investments will be very high if the interest rates go up from the current ultra-low levels.

Further, China seems to be recovering now and there has not been any major negative news out of Europe recently.

Do you that that the retail inventors are finally back into stocks and if so, why?

A)   Fiscal Cliff Resolution

B)   Positive Earnings Picture and Improving Economic Scenario

C)   Better data from China/Europe remains stable

D)   Fear that bond bull market may finally be over

E)   None of the above-it's too early to say whether retail investors are coming back to stocks.



PIMCO-TOT RETRN (BOND): ETF Research Reports

SPDR-GOLD TRUST (GLD): ETF Research Reports

SPDR-SP 500 TR (SPY): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: BOND, GLD, SPY



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