Individual Investors on a Buyers Strike

posted 10/22/2010 in General

Market Commentary Highlights...

This is the first time in twenty-five years that a three-month gain in the S&P 500 of 10% or more was not accompanied by net inflows into U.S. equity mutual funds and ETFs.

While individuals may have overcome, to some degree, their distrust of the durability of the economic recovery and policymakers in Washington, they remain distrustful of the integrity of the U.S. stock market. $53 billion has come out of U.S. stock mutual funds since the "flash crash" of May 6, 2010.

The structure and significant evolution of the U.S. stock market has pushed the U.S. stock market to fray at the edges. When pushed too hard, it can have a temporary breakdown.

If the current buyers strike by individual investors turns into a permanent boycott, further gains may be hard to come by.

Read the entire Market Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of October 18, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. This commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com
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