Once again the global conspiracy to trick retail investors so that professionals could trample all over them has done its job, this time it was the Fiscal Cliff hype-a-palooza.
Bank of America Merrill’s strategist Savita Subramanian shows that in the last couple of weeks, individual investors have been fleeing stocks at a record rate. I guarantee you that this has been happening in no small part thanks to the fears over the Fiscal Cliff and the havoc it’s been said to mean for America’s retirement portfolios.
But guess who’s been buying up all the stocks you’ve been selling?
From Matt Boesler at the Business Insider:
Josh here – according to the report, last week Merrill’s private clients (read: rich retail investors) sold a net $1.4 billion worth of stock. Hedge funds came in and bought a net $169 million.
Institutional investors have bought an average of $315 million worth of stocks over the last four weeks while mom & pop have dumped an average of $920 million worth.
It never fails. Cue the Santa Claus Rally.