Standard & Poor’s index is up 17 percent since late August, and other statistics are also showing that the market is improving slowly but surely. These improvements may be causing a bullish atAAIItitude and drawing individual investors back into the market. Last week, in a survey conducted by the American Association of Individual Investors to see how investors are feeling about the current market climate, 48 percent answered that they are indeed leaning towards a bullish attitude, whereas only 27 percent were feeling bearish (which is a vast improvement from 2008/early 2009).
Due to this current sentiment, money is also moving its way back into the market. No one is saying it is RUSHING back, but there is a definite increase to be seen from the individual investor. In fact, a quarter of recent money flowing into equity funds has come from the individual investors. This support which has been missing from the market could be what helps keep up the run we are currently seeing. Again, I’m not saying that we have seen a HUGE improvement, but the trends are saying that the individual investor is not as timid about returning to the stock market. I think we can take this as a good sign and hope it encourages some other individuals to dip their toes back into the pool.
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