Another story about big institutional investors (smart money) flowing out of equities while the gullible retail investor keeps “pouring it in” through retirement accounts. YOU CAN AND MUST time the market at a macro level to make any real money in equities, especially if you invest in mutual and indexed funds (yes, your broker or financial advisor is wrong.) All the indicators are telling you it’s time to sell, especially for the 50+ folks who don’t have 10 to 20 years to wait for a market recovery. Once the market cycles down, 20%, 30%, 40%, it’s opportunity time! You can read the full article here and some excerpts below.
Bank of America Merrill Lynch reports that its clients (institutions, hedge funds and private clients) who have sold stock for all but two to three weeks during 2016, have once again sold $1.9 billion of U.S. stocks while the SPX was hitting new highs. Institutional clients led sales due to poor performance. It has been the retail investors who have been flooding the market while anticipating a massive breakout and rally.