Individual investors return to Wall StreetThe major averages are up anywhere from 6% to 9% on the year, and it looks as if the allure of rising prices is bringing retail investors back into the stock market, says Cort Gwon, director of trading strategies and research at FBN Securities.

True, the Dow Jones Industrial Average ($INDU) has tacked on nearly 400 points over the past two weeks, thanks in part to solid quarterly earnings reports and anticipation of more stimulus from the Federal Reserve. But another boost for equities is coming from retail investors who've tentatively started moving money from bond funds back into stock funds, Gwon says.





The reason for this sudden shift in fund flows? Retail investors are getting their statements in the mail for the quarter ended Sept. 30 and seeing that stocks are up -- while bonds are yielding next to nothing in a zero-interest rate environment, Gwon says.

"In the past couple of weeks you've seen a shift from flows to fixed income back into stocks," says Gwon. "A couple of weeks ago, we had $2 billion of inflows into fixed income. Last week it was only $300 million. That money is now going into the stock market."

For more on Gwon's take from the floor of the New York Stock Exchange (NYX), see the video above.

Increase your money and finance knowledge from home

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

18 Comments

Filter by:
ruskatsons

Get in the game or sit on the sidelines. Investing has always been smoke and mirrors, so either get in or stay out. Quit your whining. A few years ago, one could throw darts and look like a wall street expert. Now back to reality. Doing research is still no guarantee. Take the chance or watch. Those are the options. Back to life.

October 28 2010 at 10:12 AM Report abuse rate up rate down Reply
BHarrison2

It was "interesting" to read that Bush felt like his biggest failure was not getting Social Security "privatized" . . . which is just another way to suckeer Americans into the corrupt Wall Street markets. The wealthy financial institutions and the Wall Streeters will doanything to suck the last dollar out of the American people. We have ALREADY SUBSTANTIALLY become a nation of people who are "enslaved" by economic endebtedness. And for even those like myself who have NO endebtedness, we cannot earn any type of reasonable RoI - Return on Investments, due to the controlled markets . . . the American people are being totally defrauded by the wealthy who control both our economy and our politics/ government. They are still maintaining the illusions to keep the American people from realizing what has ALREADY OCCURED. If you don't realize this already, then you have no idea as to what is REALLY going on.

October 25 2010 at 10:46 AM Report abuse +2 rate up rate down Reply
BHarrison2

As shown on national TV many times, the stock markets are substantially manipulated by the insiders using super computers to make the markets rise and fall; and to take advantage of skimming of these market movements. The stock markets are SUBSTANTIALLY a SUCKERS GAME, akiin to gambling in Las Vwegas, only perhaps worse than Vegas. There is darn little, if any, integrity in the markets now days. The market values are NOT relative to the profitabilty or true value of the corporations; ti is mostly a contrived illusion by the market insiders as they suck in investors to con. Tatinal and reasonable people will avoid investing in such a corrupt market until, and unless the government restores integrity to the markets (which is doubtful). WallStreet's interests are UNEQUIVOCALLY NOT the "best interests" of Main Street USA. Wall Street does NOT create any type of jobs for the average American people. Don't invest your hard earned money in a fool's market.

October 25 2010 at 10:38 AM Report abuse +3 rate up rate down Reply
kluj1

too funny. Now, at the highs, over 11,000, they are warming up to stocks. lol. good lord!

October 25 2010 at 10:36 AM Report abuse +2 rate up rate down Reply
1 reply to kluj1's comment
itacurubi

Determining how the retail market for stocks is doing is more a matter of volume than price.

October 25 2010 at 11:54 AM Report abuse rate up rate down Reply
bdyftns

lpi2007........I hope your sitting on the sidelines while the rest of us are making money. The Dow next stop off....12,000. lpi2007...keep your money in a Money Market where you can earn less than 1% annually before taxes. Have fun in the bread and cheese line.

October 25 2010 at 10:35 AM Report abuse -1 rate up rate down Reply
ksmwtm

Savers have been screwed by the FED with interest not keeping up with inflation--what inflation--right. The only place for 401-Ks & IRAs to make 3 or 4% is equities & now the low volumn has adjusted 'prices' up all will jump on the band wagon & Goldman & buds will take home the bacon & leave Mainstreet once again with the sizzle! If companies are making DECENI EARNINGS, why would CEOs RISK their job by adding employees---when it may take more than 1 Annual Report to recover the investment? SPIN! SPIN! SPIN!

October 25 2010 at 10:23 AM Report abuse rate up rate down Reply
2 replies to ksmwtm's comment
bdyftns

kwmwtm....what inflation are you talking about. We're in a period of deflation. Pick up the paper once in awhile.

October 25 2010 at 10:36 AM Report abuse +1 rate up rate down Reply
ksmwtm

My weak attempt at scarcasm has been made clear. Thanks bdyftns. There is NO inflation so savings acct interest NOT keeping up would be pretty LOW. Treasury Notes are a choice if one doesn't mind waiting 30 yrs for maturity to recover principle. The point I attempted to make is that our economy is in a stall & there is little incentive for CEOs to take on risk of new employees while they are earning more than interest.

October 25 2010 at 10:51 AM Report abuse rate up rate down Reply
lpi2007

I LOVE WATCHING CROOKS FIGHT AGAINST EACH OTHER, SCREWING EACH OTHER. THEY WILL SUCK IN SOME STUPID PEOPLE BUT NOT VERY MANY. BUY BUY BUY D.A'S

October 25 2010 at 10:00 AM Report abuse -1 rate up rate down Reply
lpi2007

I LOVE WATCHING CROOKS FIGHT AGAINST EACH OTHER, SCREWING EACH OTHER. THEY WILL SUCK IN SOME STUPID PEOPLE BUT NOT VERY MANY. BUY BUY BUY D.A'S

October 25 2010 at 10:00 AM Report abuse -1 rate up rate down Reply
lpi2007

I LOVE WATCHING CROOKS FIGHT AGAINST EACH OTHER, SCREWING EACH OTHER. THEY WILL SUCK IN SOME STUPID PEOPLE BUT NOT VERY MANY. BUY BUY BUY D.A'S

October 25 2010 at 10:00 AM Report abuse -1 rate up rate down Reply
Susie

The time to buy was when the republicans failed policies had the stock market at 7600 last January........and Americans were voting republicans out.

October 25 2010 at 9:57 AM Report abuse +1 rate up rate down Reply