# Investors, I need to pass this along.



## Tweto (Nov 26, 2011)

I have now heard from 2 sources on the Fox business channel that "professional" and institutional investors (for the last 2 weeks)are quietly pulling money out of the markets and building cash reserves. They are selling stocks a little at a time so as not attract attention. At the same time several brokerage houses are saying that this is the perfect time to get into the markets.

On a side note at the end of the trading session and they talk to the people on the floor they have been saying that trading as been with extremely low volumes and that the trading is mostly from the small investors.

Several weeks before GLD started dumping I started to hear the same thing about gold.

When I watch Bloomberg, CNBC, or Fox business, when a spokesman for a brokerage house comes on to talk it's always the same thing, "now's the perfect time to get in". But when the Wall Street journal brings information about money being pulled out I take it as fairly true.

There are no sure things when investing but this makes my gut think that something could happen. Next week, next month, next quarter I don't know.


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## JayJay (Nov 23, 2010)

It's their bread and butter--what do you expect any to say that depend on that for income???

It is sorta like my neighbor asking her doctor about the herbs and vitamins I take--what do you think he was gonna say?
Oh, yeah, take all she takes so I won't see you again??:dunno:


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## Marcus (May 13, 2012)

We're setting up for a drop next month. It may actually not happen until September or October, but it's coming. Low volumes are usual during the summer as the professionals summer in the Hamptons.


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## invision (Aug 14, 2012)

Tweto said:


> I have now heard from 2 sources on the Fox business channel that "professional" and institutional investors (for the last 2 weeks)are quietly pulling money out of the markets and building cash reserves. They are selling stocks a little at a time so as not attract attention. At the same time several brokerage houses are saying that this is the perfect time to get into the markets.
> 
> On a side note at the end of the trading session and they talk to the people on the floor they have been saying that trading as been with extremely low volumes and that the trading is mostly from the small investors.
> 
> ...


We have been running in a bull market now for how long 4-5 years? It's time for the bears to start showing up to the party... A good asset management firm will have not only the equities side, but will also have a fixed income and most likely a commodities arm as well... So for those that you mentioned above, they remember how to make money in a bear market - to pull small amounts out is simply taking profits without causing a scare... Smart move, that way they are able to be properly funded for the bears...

As for those saying never better of a time to invest is just like those in the PMs going now is the time to invest when gold was at 1800-1900 per ounce... Most small time investors think - buy when the going is good, sell when market loses value - but it is the opposite.

I also think this could also be profit taking in preparation for QE3 slow down by the Fed. Everyone out there knows when the Fed stops pushing out $85B to the 20 investment banks later this year, there goes the party...

I say we hit 12,000 by end of Sept - just some downward motion and we won't see big downs until QE3 stops and add 3-4 months...


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## Tweto (Nov 26, 2011)

invision said:


> We have been running in a bull market now for how long 4-5 years? It's time for the bears to start showing up to the party... A good asset management firm will have not only the equities side, but will also have a fixed income and most likely a commodities arm as well... So for those that you mentioned above, they remember how to make money in a bear market - to pull small amounts out is simply taking profits without causing a scare... Smart move, that way they are able to be properly funded for the bears...
> 
> As for those saying never better of a time to invest is just like those in the PMs going now is the time to invest when gold was at 1800-1900 per ounce... Most small time investors think - buy when the going is good, sell when market loses value - but it is the opposite.
> 
> ...


I think you misunderstand what I was saying. This is not "profit taking" (in the normal sense of the saying) and they are not relocating their money to commodities or reinvesting into any financial instruments that anyone can see. What they are doing is converting to cash in large fractions of their total holdings.


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## machinist (Jul 4, 2012)

My best guess is that these people are trying to get out after Bernanke's talk about "tapering" off QE. It seems pretty obvious that QE has been propping up the stock market, if/when that goes away, down goes the market. 

The aspect of going to cash may be due simply to the lack of any obvious place to invest, coupled with general insecurity among investors.


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## goshengirl (Dec 18, 2010)

machinist said:


> The aspect of going to cash may be due simply to the lack of any obvious place to invest, coupled with general insecurity among investors.


My thought is that they're going for liquidity. The question is, where will they put their cash when things start to go south? Getting out of the market makes sense, but the dollar isn't a stable commodity, either. I think you're right, machinist - there just isn't any obvious place to put their worth.


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## machinist (Jul 4, 2012)

Being in cash also allows for a fast move when an opportunity presents itself. Right now, there isn't a paper investment of any kind that I would touch with somebody else's 10 foot pole.  Everything is in a state of flux, so the smart money is waiting on the sideline, IMHO. Well, the daytraders are still doing their thing, but even they are being very cautious, and most of them have been 50% cash or more for the past year.

I am investing in antique horse drawn farm equipment to restore, blacksmith tools, and improving our campsite.


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## BillS (May 30, 2011)

There's a stock market crash coming. The market hit an all time high when the economy is terrible and getting worse. I wouldn't have a dime in the market if I had a choice.


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## invision (Aug 14, 2012)

Tweto said:


> I think you misunderstand what I was saying. This is not "profit taking" (in the normal sense of the saying) and they are not relocating their money to commodities or reinvesting into any financial instruments that anyone can see. What they are doing is converting to cash in large fractions of their total holdings.


I didn't misunderstand, what I am saying is since the bulls have been running for 4 straight years it is time for the bears... AND to be able to take advantage of the bears coming they want - A profit from their investments over the last 4 years - B be prepared to take advantage profit taking opportunities as bears arrive - C have cash on hand to convert to another currency as USD drops when it drops...


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