Investors fleeing the stock market with speed

Investors fleeing the stock market with speed

The US stock investors are removal investments preferring cash at levels not seen since the economic crisis of 2008. When investors panic in the market crash they sell stocks and buy bonds which are seen as safer instruments. That is not happening now. Investors are fleeing not only the actions also avoiding bonds commodities and global funds. July and August will be the first time since late 2008 that in two consecutive months small investors have reserved money from both evenhandedness funds and bond funds according to Credit Suisse.

Investors fleeing the stock market with speed

Stock market instability in the weeks before the auction has only intensified. Only in the week from 24 to 28 August investors withdrew nearly 30,000 million from stock funds. It is the largest weekly outflow since Bank of America Merrill Lynch began tracking the data in 2002. The ‘Fear & Greed’ fear and greed index CNN Money shows a level of great fear in the market.

The wave of sales was stronger on Tuesday August 25, the day following the dramatic drop in the Dow 100.000 points the highest in its history. While the general trend among small investors is to avoid actions some defy fear and embark on the hunt for bargains. The Dow posted its historical fall on Monday 24, just after 9:30 am. Fifteen minutes later Ryan Cutter already was logged into your account at brokerage Charles Schwab buying shares.

CNN Money spoke with more than a few young as Cutter investors seeking the opportunity to buy some cheap stocks. They believe that if they buy when they are in their twenties and kept for several years – or even decades – bring them high dividends later. An application that allows investors to carry out transactions free, is popular with. 24 Monday reported a 100% increase in new accounts. On Tuesday 25, 80% of customers bought new shares or added more money to your existing trends. Among the most popular purchases were Ford, Netflix and Bank of America.