Interest in Stock Market Investing Wanes as Risks Increase

You can expect that interest in stock market investing will wanes from time to time. In fact, it is waning now. As uncertainty increases because of weak performance data, for example the Dow fell more than 200 points in early February 2014, stock market risks are steadily rising. With the Dow, NASDAQ, S & P 500 AND Treasuries down, it’s no wonder that investors with poorly-performing stock investments will want to review all of their investment alternatives. In January 2014, the Dow fell more than 5%, and is now more than 7% off its all-time high.  The S & P 500 is 5% below the end of last year, and it looks like February 2014 may be a replay of that dismal performance.  I am thinking "Market Correction."

In world markets, the story appears to be the same: The Nikkei, FTSE, DAX and TSK markets are all down on the first day of markets open for February, and the only sign of investor enthusiasm is in precious metals and the Euro against the Dollar.  Gold and Silver are beginning to rise just a bit, as well.  Has the down-slide reversed?  Time will tell. At least some alternatives are rising up nicely.  International real estate, container shipping investments and currencies show signs of investor interest, where common investment risks are higher still.

There is an old adage in our trade – Sell in May and Go Away, but the way the markets have been acting the first 34 days of this New Year, it would seem that May 2014 is coming earlier than the calendar would suggest.  In late January 2014, the SEC warning that RBS Plc will post its biggest loss ever has rattled European markets, as well as others abroad.  But that is one indicator of what is happening in stocks and bonds all over the world.

All I can say with any confidence is that change is coming; and change is tough to deal with regardless if it is in our investments, families or workplace.  Remember to review investments carefully. Stock market market investment risks have elevated and investors are eager to review other options.  There is an awful lot of red ink on the reports of Change and % of Change.  Brace yourselves, because investor interest is waning to say the least, particularly with regards to traditional investments like stocks, bonds and real estate.