Understanding the markets this week: April 12, 2021

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    “According to BofA, investors sold individual stocks while buying ETFs. Last week, BofA recorded a net outflow of $ 400 million from U.S. stocks.

    And this post suggests that investors are just “a little greedy” rather than extremely greedy …

    “Bank of America’s Bull & Bear indicator … remains well below the level that would generate a sell signal for the stock market. Additionally, the CNN Fear & Greed Indexin order to measure the emotions of investors, has recently passed from “neutral” to “greed”, but remains under “extreme greed”. “

    Investors in some of these high-flyer stocks could look to institutional fund managers. They reduce stocks that have hit target prices. You could shift funds to less volatile sectors or even to risky assets. On the stocks side, the funds are switching to financials, stocks and small caps, with energy ETFs setting an inflow record. Of course, at the end of October 2020 we mentioned the great potential for Canadian energy producers.

    It’s called RebalancingOf course, and that’s what happens when we hold individual stocks. Realignment, however, is not necessarily the retail investor’s greatest strength. We could face FOMO – fear of missing out on higher prices.

    I recently cut some of our US high-flyers and set myself new sales targets. It’s just a normal part of the balance. My wife and I are in the retirement risk zonewithin 10 years of retirement. If you are in the early stages of accumulation, you may have the option to ignore and accept the volatility if you are also very tolerant of risk.

    And higher prices are not missed if they are achieved. We continue to hold positions in these stocks. The higher prices simply mean more profits that go (for our situation) into risky assets like bonds and gold, other commodities and cash.

    I will rinse and repeat.

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