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Fear Is Spreading Among U.S. Stock Traders

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Stocks may be recovering but market angst is quickly spreading -- and not just in the professional ranks. Retail traders are now the least bullish on the U.S. stock market since December, when the S&P 500 sank to a 20-month low, according to a weekly survey by the American Association of Individual Investors. Bearish bets have also been increasing, climbing to the highest since the start of the year. Red flags are popping up in different corners of the market- wrote Bloomberg. Deutsche Bank AG strategists noted on May 31 that rising put-call volume ratios as well as retail sentiment deterioration “approaching extremes” signal downside risks for U.S. stocks. For six weeks in a row, money managers have reduced their stock holdings, the longest streak of selling since June 2011, when the market was mired in the sovereign-debt crisis. U.S. equity funds have been seeing significant outflows, losing $8.4 billion in the week through May 29 just as investment-grade bonds whetted investor appetite, according to EPFR Global data.

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1 minute ago, 50 shades of black said:

because what happened last weeks will have to happen this week ... vicious circle. :)

not so simple ... china, mexico, who is next? Of course that market it feels ...

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A little more and we are talking about the global world economic war ...

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(edited)

"Retail investors"? As opposed to "professional" investors? 

There's a famous and possibly allegorical story about Joe Kennedy getting stock advice from his shoeshine boy. He was quoted as saying, "When shoeshine boys are in the stock market, it's high time for grown men to leave". And he did, dumping all his stock and moving to cash scant months before the great crash. 

Just in case my memory was all wet, I quickly googled and found This timely article, from a mere 25 years ago. 

Edited by Ward Smith
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What's hurting the stock market? Politics that get uglier and uglier. Perhaps soon it goes toooo far, and we pay the price, not politicians. And tariffs are scary. Mexico will get settled fairly fast. China is more difficult to solve equitably. China has a lot of methods to stump the US. Nevertheless, something must be done or China takes over the world/everything. The US must turn the corner in multiple ways. Too many trends need change of direction. Again, citizens must do. Politicians won't/can't. Read the book, 'Pain Awaits' by SB Shine. Covers about all. Trump has book ... probably not reading, but he should. Something for all to detest. 

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