Mic Lombardi made this interesting observation...
Investors pulled $5.46 billion out of stock mutual funds last week—the biggest withdrawal of money from stock mutual funds since the week ended December 8, 2010.
This is according to Investment Company Institute in Washington.
But, where did stock prices go after December 8, 2010? From the period December 8, 2010 to May 2, 2011, stocks rose 12%. Investors took money out of the market…and the market rallied.
"Given investors fleeing stocks and given stock advisors being at their most bearish position since September 10, 2010, I believe we have just undergone a correction in a primary bear market rally and that this oversold market will surprise on the upside."
I am definitely on the long side of stocks.
No comments:
Post a Comment