Friday, April 12, 2013

Investors are back with a vengeance

http://money.cnn.com/2013/04/12/investing/stocks-rally-inflow/index.html?iid=SF_BN_River


This year has shown major signs of improvement in the stock market and investors are investing more money into mutual funds and ETFs. Investors have invested more than sixty billion dollars into the U.S. stock mutual funds.  As soon as the year began there was a drastic increase in the amount of investment into the market which was a great improvement compared to the previous years.  One of the biggest influences behind this sudden increase in investment was due to stimulus from the Federal Reserve which created strong inflows into the stock market. The Fed pumped money into the financial systems by buying up equities in the stock market and on average there was inflows of roughly four billion dollars daily.  Experts say that there is still plenty of money to be made because in previous years there was fewer investors in the stock market.  It will be interesting to see what happens to the stock market as the year progresses, hopefully it will continue to show signs of improvement. 

5 comments:

  1. An increase of investment in the stock market is a good sign for our recovering economy. Although investment is improving we have to remember that this is only just a result of a monetary policy by the Fed. I wonder if this increase in investment Will continue even after the expansionary policy is stopped.

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  2. hopefully this and the fiscal policy, American Taxpayer Relief Act of 2012, that kept us from going over the fiscal cliff keep the investment and consumption on the up and up.

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  3. Indeed, an increase in investment would be vital in the healing of this wounded economy. However, I wonder how the fed would counteract the possible inflation that this causes, and also whether this sort of investment is eventually sustainable; I wonder how long the time lags are before we start seeing the effect of this on the US economy.

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  4. It's good to see that people are continuing the trend of investing more money into the stock market. It shows that people are growing more confident in the stock market as well as the financial system as a whole.

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  5. I also think an increase in investment in the stock market indicates an improvement in our economy. I wonder how much of this stock buying is with money coming off the sidelines out of CD's, and how much of it is buying on margin because the Fed has made so much money available for borrowing so cheap.

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