Saturday, February 12, 2011

The increase in Mutual Fund investments is an indicator that investor confidence is improving

The increase in Mutual Fund investments is an indicator that investor confidence is improving. For the first time in seven years, more money was added to the US stock mutual funds than was withdrawn.

In January, 2011, investors deposited $21.3 billion dollars in US stock funds. This is the greatest surge since February 2004. Individual investors are gaining more confidence in the US stock market. There seems to be less concern about volatility because there have been steady gains. Market optimism has been steadily increasing and the mutual fund market is showing more individual interest and growth.

Recent survey indicate that stock prices will continue to increase over the near future. Due to the conflict and the problems in Egypt, worldwide investors were cautious,; however, US investors continued to invest in developing markets. This is positive news for the investors across the board. Any positive results are good for all.
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