Back to top

Real Time Insight

It appears that the retail investors are finally warming up to stocks. Per data from Lipper, U.S. stock mutual funds had inflows of $6.8 billion in the first three weeks of 2013—largest inflow since 2001.

Investors breathed a sigh of relief when the two parties finally managed to arrive at a deal to avoid the fiscal cliff. Further the earnings season so far has been better-than-expected and the economic picture has generally been improving.

At the same time, bond yields have started creeping up and many investors fear about that the losses on the bond investments will be very high if the interest rates go up from the current ultra-low levels.

Further, China seems to be recovering now and there has not been any major negative news out of Europe recently.

Do you that that the retail inventors are finally back into stocks and if so, why?

A)   Fiscal Cliff Resolution

B)   Positive Earnings Picture and Improving Economic Scenario

C)   Better data from China/Europe remains stable

D)   Fear that bond bull market may finally be over

E)   None of the above—it’s too early to say whether retail investors are coming back to stocks.

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is The Next Great Innovator that looks to change the direction of our entire economy. Another is a recent IPO that already built a fortress in its segment. Still another, a small cap, has racked up 7 straight positive earnings surprises.

Close This Panel X

Please login to or register to post a comment.