Retail Investors Fleeing

By Jeff Voudrie
Equity mutual fund outflows continue while equity trading volume is at historic lows. Yes, retailer investors are still fleeing.

Over recent years investors have seen unprecedented volatility, ‘Big Bank’ bailouts, GM bondholders get run over, deficits soar and debt burdens become unbearable. Moreover, firms like Goldman Sachs take positions counter to what they recommend to their clients (or front-run them)… and now there is LIBOR-gate in which we find may have been manipulated so a firm’s traders could ‘profit’.

Although one of many, here is a recent case study on ways big firms can profit based on unauthorized use of confidential client information (authenticity not verified). Exposure of flaws may be good longer term as may equate to transparency, but over the near term, this is serving to scare away retail investors.

As seen this morning (as well as earlier this month and many times over recent months), the equity and currency markets have significant moves up or down based on the latest comments out of Europe or from government officials or government reports. The volatility is endless. And now the markets seem to move on rumors of rumors.

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And that’s nothing compared to the direct intervention and manipulation of the markets by the Federal Reserve.

No wonder retail investors aren’t interested in stocks anymore. Can anyone blame them?

Jeff Voudrie and Common Sense Advisors do not offer investment advice via this medium. Under no circumstance whatsoever do these postings, opinions, charts, or any other information represent a recommendation or personalized investment, tax, or financial planning advice.


Twitter:  @JeffVoudrie   @seeitmarket     Facebook:  See It Market

Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of his employer or any other person or entity.