Financial Planning - The Worse May Be Over

Money on the sidelines

Many investors tend to follow a peculiar habit of having most of their money in equities when markets are near top conditions, but having little exposure when markets are at their lows. With the S&P 500 having declined substantially in 2008, there was a huge amount of money waiting on the sidelines. As at 26 November 2008, the U.S. Money Market Fund was increased to US$3.7 trillion, which amounts to 35% of the total U.S. market capitalization. It have since reduced to about 30% today resulting in a sudden surge in worldwide indices and equity prices recently. (more…)