Monday, August 23, 2010

Small Investors Flee Stock Market Even as Companies Recover

With renewed economic uncertainty, American investors have withdrawn a staggering $33.12 billion from stock market mutual funds so far this year.

The small invester is and always has been very risk averse.

They are frightened. I am frightened. I am holding equities going into a deflation.

My numbers will go down. Deflation will not be allowed to last long. It will hurt too much. It will be followed by violent inflation as our government tries to restart a dead economy. Timing will be everything and I cant time worth a damn. I have a few dollars in cash that I plan to push in when things look really cheap. 1933 cheap. When China goes into collapse and chaos our industries will rebuild. I do not see much but depression until then. These plans can change at your behest.

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