Mom and Pop Investors Back in the Market? Is it Time to Sell?

Most of the time when Individual Investors buy stock in a big way the market will drop.

This means that approximately 35% of all household financial assets are “at risk.” In fact, we’re now getting back to investment market participation levels not seen since the third quarter of 2007, during which 34% of all household assets were invested. The two previous peaks before then were Q1 2000 (43%) and 1968 (31%). Bears will note that these moments coincided nicely with the onset of the last three major bear markets, 1966 to 1982, 2000 to 2002, and 2007 to 2009.

 The individual investor is usually holding the bag when the music stops and the pros flee the field. This article points out that these investors are going in using passive Index funds and other more conservative stuff. No pets.com or Nifty 50 or other mess as far as I can tell. At least the economy is improving so there really isn't a true reason for a massive drop or recession in our future.