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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: KY who wrote (40781)2/19/2000 10:10:00 PM
From: Jacob Snyder  Read Replies (1) | Respond to of 99985
 
re: visitor counts for the Motley Fool's PEG calculator

I have a better contrary indicator I use, which is flow of funds into stock mutual funds. Very consistently, over the last 40 years, the times when there were net redemptions (i.e., individual investors were, overall, taking money out of stocks), turned out to be the perfect time to be putting new money in.

It makes more sense to follow what people are actually doing, rather than what they're thinking about.

This doesn't work for sectors quite as well, because investors can start taking money out of a sector, and then continue doing so for years. But the periods of net redemptions (for all stock funds combined) have been brief.

Recently, all stock mutual funds, except growth funds, have been having net redemptions.