Since March 2009, U.S. markets are experiencing over three year run. Corporate profits are increasing, jobs are gradually coming back and the overall economy is showing improvement. Standard & Poor’s 500 Index doubled over the three year period and Dow Johns hit 12,000.
In spite of these gains, trading in New York Stock Exchange has slowed to an average 768 million shares, lowest level since 1999. Investors withdrawn more money from mutual funds compared to deposits for last five years. Why investors are moving away from the market?
Europe debt crises especially the fear of a Greece debt default are still haunting the market. China is putting breaks on bank loans to slow down the rampant growth. The U.S. unemployment is easing much slower than expected. Middle East is embroiled in political turmoil. Israel is determined to stop Iran developing a nuclear weapon. A year later, Syrian uprising is still going on. U.S. Presidential election is around the corner.
So the fear and anxiety over many matters are keeping investors at bay. However, the markets are hitting new highs every week. It will take some time to dispel fears and entice investors to participate. When that happens markets will zoom even higher.