Source: WSJ
Post Traumatic Crash Disorder (PTCD™ a registered trademark of TBP) seems to be a genuine condition. As the chart above (and accompanying article) reveal, it is the intriguing result of the most recent crashes.
We know “generals always fight the last war,” and it is apparently true about about investors as well. Here is the WSJ:
“After two stock collapses in one decade—2000-2002 and 2007-2009—along with scandals, the rise of high-frequency trading and worries over Washington’s ability to rein in debt, Americans are pulling out of the market. Individual investors yanked a net $900 billion from U.S. equity funds since January 2000, according to fund flow tracker EPFR Global. Stocks and stock mutual funds now make up 37.9% of the average U.S. household’s financial assets, down from 50.5% during the height of the tech-stock boom in 2000, according to the U.S. Federal Reserve.”
That may be the single most bullish thing I have read this year . . .
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