Thursday, December 23, 2010

individual investors can return "U.S Stocks " after shunning stocks in favor of the bonds from the financial crisis

A rise in U.S. stocks at low prices suggests that individual investors can return after shunning stocks in favor of the bonds from the financial crisis, according to MF Global Inc.

The 150 stocks in the lower price range in 1500 the Standard & Poor's have returned 15 percent as a group this month. That's more than double the average gain for the highest price-150 stocks, and the best performance among the 10 price groups classified according to the data of MF Global.

The rise of low-priced stocks, which were below $ 10 on November 30, individuals are buying signals, because institutional investors tend to move away from these less liquid shares, said Craig Peskin, co-head of technical analysis MF Global.

"Throughout this bull run, retail investors did not return to big," Peskin said in a telephone interview from his office in New York. "Having investors get back is just another sign of demand for shares. Hopefully that adds to the length of this bull market."

People avoid stock at $ 11000000000000 was erased from U.S. equity securities between October 2007 and March 2009. About $ 55 billion was withdrawn from equity funds of U.S. investment in the third quarter, according to data compiled by the Investment Company Institute. While 500 of Standard & Poor's rose 11 percent during the period, the withdrawal was the first time a three-month advance to encourage investment, according to LPL Financial Corp. in Boston.

The stock rebounded after the U.S. government and the Federal Reserve increased its spending to stimulate the economy and 70 percent of S & P 500 surpassed profit forecasts for a record six consecutive quarters.

Full recovery

The S & P 500 this week completed its recovery from the decline of six months that followed the collapse of Lehman Brothers Holdings Inc. 's September 2008, extending its rally from a 12-year low in March 2009 to 86 percent.

People are increasingly optimistic. The weekly survey of the American Association of Individual Investors showed bulls has exceeded 2.35 on 9 December, the second highest this year.

The group of low-priced stocks beat the S & P 1500, the gain by 6.4 percentage points this month, the widest spread since August 2009. The difference in investment returns over the past two months, when cheapest lost market shares, MF Global data showed. Of the 150 stocks, trade a less than 500,000 shares a day and three quarters have a market value of less than $ 1 billion.

"Those are generally the people that large institutions are not aggressive buyers, because there are just enough liquid," said Peskin.

In technical analysis, investors and analysts charts on trading patterns and prices to forecast changes in the security, commodity, currency or index.

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