Small Investors Flee Wall St. in Hordes

Investors are not sold on financial recovery, it seems
By Emily Rauhala,  Newser Staff
Posted Aug 22, 2010 6:29 AM CDT
Small Investors Flee Wall St. in Hordes
Um, no thanks.   (AP Photo/Richard Drew)

(Newser) – Americans love the stock market—that is, they used to love the stock market. But shaken by the financial crisis, investors withdrew $33.12 billion dollars from domestic stock market mutual funds in the first seven months of this year, finds the New York Times. Instead, they're putting their money in options deemed safer, like bonds. “This is very unusual,” one economist says.

It seems fear is the driving factor. The financial crisis has lowered the appetite for risk. "For a lot of ordinary people, the economic recovery does not feel real," an analyst tells the Times. "People are not going to rush toward the stock market until they feel more confident." Click here to read what the 'Hindenburg Omen' predicts for the stock market (hint: it's not good). (And for the best books about the financial crisis, click here)

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