Korelin Economics Report

Professional investors are shorting while individual investors are diving in

The article linked below brought to my attention that professional investors have been shorting US stocks while individual investors are throwing their money into the markets. Short interest in the S&P 500 hit 1.76% recently (for the median stock), a level that has not been seen since September 2012. While individuals have drastically increased their exposure to US equities. Just look at the divergence between the Pros and Joes below.

Many people say the markets reach their final top when the individual investor goes all. While we are not there yet if this trend continues we could see some more very sad stories about the average American getting screwed in the market again.

Click here to read the article that brought this topic to my attention.

Exit mobile version