I found some data this morning from the National Association of US Investment Companies that I find very interesting. Despite the strong performance of American stock markets over the past 6 months Retail investors have been consistently withdrawing far more than they are investing in domestic equity funds.
I don't believe in any hard and fast rules about zigging when others are zagging, but I have to admit it is comforting to see that the supposed "dumb money" is not chasing equities at this time.
Perhaps not suprisingly that money has been going into bond funds that offer little return and potentially some significant risk should rates start rising.
The consistency of the outflows over the second half of 2010 from domestic funds is amazing to me given how much the markets have risen over that time.
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