As stocks have surged higher small investors have piled back into the market. The Investment Company Institute reports the 13th straight week of mutual fund inflows. Inflows totaled $12.5B with $5B of that going into equity mutual funds. This has proven to be a fairly reliable contrarian indicator during this bear market. The fact that small investors are increasing their stakes in stocks should be a red flag in the near term….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.