22 August 2010

Small Investors Appear to be Fleeing the Market

A news article from the New York Times today is warning of a worrying sign that money is moving out of stocks and into bonds.

If this trend continues there could be repercussions on the forex market. It's hard to tell what might happen but at least it is something to watch out for.

At the moment, sentiment in the US stock markets and USD appear to go in opposite directions. If the US stock market goes up, the USD goes down. Vice versa.

Will be interesting to watch what unfolds in the coming weeks.

Read the article here.

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