Good News: Small Investor Sentiment Improving

by Dual Income No Kids on May 16, 2009 · 0 comments

Hi All,

Well here is some good news. The NY times is reporting that so called “mom and pop” investors are getting back into the stock market. Many commentators have noted that recessions are partly psychological – that is fear of losses cause people to limit their economic participation, thus resulting in overall declines in capital investing. It’s hard to make wealth when approaching investing with fear. The fact that small investors are getting back into the market means that uncertainty is starting to decline.

Some excerpts from the article:

A woman on Long Island opened an Ameritrade account and started buying stock in mining companies. In Chicago, a developer in advertising is betting heavily on oil. And outside Seattle, a Microsoft employee is snapping up shares of technology firms and retailers.

After being pummeled in Wall Street’s plunge last year, many small investors pulled out of stocks. But the stock market’s recent rally — one of the sharpest since World War II — is starting to beckon some of them back. So step by nervous step, some smaller investors are tiptoeing back in. They are pulling money out of savings accounts and money market funds and buying stocks and bonds, fingers crossed.“

Click here for the full text.



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