According to Morningstar small investors poured more money into emerging market mutual funds, natural resources and metals funds and junk bond funds than they did plain vanilla domestic stock mutual funds this past quarter.
It is this increased appetite for risk for some small investors that has led to the second quarter rally. Commodities have also seen an inordinate amount of interest due mainly to the fear of impending inflation.
These investors are afraid of being left behind when the 'big rally' emerges. With today's oversea's markets in negative territory, following July 2nd domestic market losses, investors may have placed themselves into temporary jeopardy.
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