Stock prices rally, but investors drop out

Stock prices have been buoyant in the opening weeks of 2012, but rallying stock prices may not stop investors from staying away from the markets

  • close
    Trader Gregory Rowe works on the floor of the New York Stock Exchange in this file photo. According to Brown, stocks have been rallying since Christmas, but investors are opting out.
    Richard Drew/AP/File
    View Caption
  • About video ads
    View Caption

It is unbelievable how much investors seems to despise the stock market here at the start of the year.  The first week of January is typically a time of inflows and optimism - of signing gym membership contracts and plowing that year-end bonus right into the ole' brokerage account.

Not this year.  Stock prices have been rallying since just before Christmas but investors want no part of it so far.  ICI is reporting stock fund outflows of more than $9 billion for the week ended January 4th...

Equity funds had estimated outflows of $9.35 billion for the week, compared to estimated outflows of $5.10 billion in the previous week. Domestic equity funds had estimated outflows of $7.06 billion, while estimated outflows from foreign equity funds were $2.29 billion.

Should the S&P truly (and finally) breakout, expect a hard reverse in this data.  People change their minds very quickly when fear of loss is replaced by fear of not keeping up with everyone else.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.To add or view a comment on a guest blog, please go to the blogger's own site by clicking on


We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.