Main Street is Running Scared
Individual investors have been largely absent from the party, as Barron’s pointed out last weekend. Not only are the ducks not quacking, the chickens are flying the coop:
Outflows in U.S. mutual funds on Tuesday hit an estimated $5.5 billion, according to TrimTabs Investment Research.
That would amount to the second-biggest outflow of the year, according to the data tracking firm. Only a $6.5 billion outflow on Feb. 27 was greater.
“Fear and ignorance seem to be gripping retail investors these days,” said Charles Biderman, chief executive of Santa Rosa, Calif.-based TrimTabs on Thursday, pointing to ongoing concerns about subprime lending and slumping housing markets. MarketWatch
They pulled the money before today’s rout. Wait till they get a hold of Friday’s Wall Street Journal and sort through today’s action.
“This is a complete panic by individual investors,” he commented. “They just don’t know what’s going on.”
Katie bar the door!
U.S. mutual-fund assets drop $5.5 billion
MarketWatch
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