No smart investor has had money in the stock market since Obama entered office. Even wiser because of the blatant hanky panky supporting the stock indices through crass manipulation.
So who is supporting the market other than the manipulators?
“Investors are pouring money into Vanguard Group, the epitome of the hands-off approach to investing, flocking to funds that track market indexes and aren’t run by stock pickers or star managers. The inflow has pushed the mutual-fund giant to almost $3 trillion in assets under management for the first time.”
“Investors poured a net $336 billion into passively managed stock and bond funds in 2013. So far this year through July, investors put a net $177 billion into those passive funds, compared with $74 billion in actively managed funds.”
“Pacific Investment Management Co. (Pimco)’s Total Return bond fund now manages $223 billion, compared with $299.4 billion for Vanguard’s Total Stock Market Index fund.”
“BlackRock, the world’s largest asset manager, has about $4.6 trillion in assets under management. State Street Corporation has about $2.35 trillion under management.”
So, the big question is what could compel these corporations to massively sell off stocks? Unless the market manipulators decide to crash the indexes, this seems to be the only way to have a large correction.
One feels stupid for not participating in this rally, yet to jump in now seems even more insane. Particularly to see the tech laden profit absent NASDAQ where it is has me shaking my head.