This is interesting: Retail investors have lagged institutional investors in terms of risk appetite and attitude towards stocks. Mutual fund flows have missed the rally big time, with much of it going into bonds, not stocks.
A new reading indicates that a long trend of growing bullishness among institutions has dipped for the first time in sevearl months.
The Pragmatic Capitalist cites the State Street Investor Confidence Index
“After eight consecutive increases in Global Investor Confidence, which took the Index from an all-time low of 82.1 during the financial crisis to a five-year high of 122.8, institutional investors took a breather this month and consolidated their holdings of risky assets,” commented Froot. “This month’s reading of 118.1 is still comfortably in the range associated with the accumulation of risk exposures, as a reading of 100 signifies neither accumulation nor decumulation. However, there is a recognition that a portion of the recent rise in global equity prices can be attributed to liquidity expansion rather than fundamental opportunities. Institutional investors are pausing to assess this balance.”