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This also means one more thing: Institutional investors and smart money is selling into this rising market. Retail investors are going to be left holding the ba

This also means one more thing: Institutional investors and smart money is selling into this rising market. Retail investors are going to be left holding the bag. The headline should be: Institutional and professional investors are going into cash resulting in individual investors that buy ETF's share to go up to 50 percent. When professional will start shorting and going the other direction. Headline will be: 80 percent of falling US assets are now invested in index funds.

throw0101a 7y ago
Storytime: > Meet Bob. > Bob is the world’s worst market timer. > What follows is Bob’s tale of terrible timing of his stock purchases. * https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ https://awealthofcommonsense.com/2014/02/worlds-worst-market...
- thtthings 7y ago
  If you are never going to sell your ETF/stocks then yeah it doesn't matter. I read online once that a mutual fund tried to see which of there customers made the most money. The customers that made the most were the ones who had forgotten they made that investment and the others who were dead.
  - throw0101a 7y ago
    > If you are never going to sell your ETF/stocks then yeah it doesn't matter. Most people are not investing for 'fun', but rather for retirement. So "never" selling, or at least not-selling for several decades, is actually a reasonable assumption. The main problem is that the general public read headlines and see "Markets Are Crashing!!1!" and pull out. Whereas if they could keep their cool a bit, and stay invested (and ideally keeping investing (monthly?) on the way down), they'll generally end up okay when they approach retirement.
mrep 7y ago
Or more likely, retail investors are pulling their money out of managed funds and putting it into ETFS. When pulling their money out of the managed fund, the managed fund will then have to sell some assets to maintain their portfolio ratios which is then bought up by the ETFS said retail investors are moving too.

throw0101a 7y ago

Storytime: > Meet Bob. > Bob is the world’s worst market timer. > What follows is Bob’s tale of terrible timing of his stock purchases. * https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ https://awealthofcommonsense.com/2014/02/worlds-worst-market...

thtthings 7y ago
If you are never going to sell your ETF/stocks then yeah it doesn't matter. I read online once that a mutual fund tried to see which of there customers made the most money. The customers that made the most were the ones who had forgotten they made that investment and the others who were dead.
- throw0101a 7y ago
  > If you are never going to sell your ETF/stocks then yeah it doesn't matter. Most people are not investing for 'fun', but rather for retirement. So "never" selling, or at least not-selling for several decades, is actually a reasonable assumption. The main problem is that the general public read headlines and see "Markets Are Crashing!!1!" and pull out. Whereas if they could keep their cool a bit, and stay invested (and ideally keeping investing (monthly?) on the way down), they'll generally end up okay when they approach retirement.

mrep 7y ago

Or more likely, retail investors are pulling their money out of managed funds and putting it into ETFS. When pulling their money out of the managed fund, the managed fund will then have to sell some assets to maintain their portfolio ratios which is then bought up by the ETFS said retail investors are moving too.