Investors may finally be lured out of hibernation as the Federal Reserve left interest rates unchanged 0%, a move that is intended to continue to whet the investor appetite for risk and exchange traded funds (ETFs).
Many investors feel that the “easy money” has been made in the stock market, and the lower interest rates have left plenty of new opportunity. Investors may be shy, but the conditions are fertile for many to come out of hiding and wade back into the market. A number of ETFs and market areas are up off the March 9 lows by 70%, 80% and even more than 100%. To continue to sit out is to miss the potential for more. [10 steps to better ETF investing.]
Gail MarksJarvis for The Chicago Tribune reports that the lower interest rates have allowed investors to pour money into stocks, high-yield bonds, commodities and precious metals.
While some fear that bubbles are beginning to form, strategists are more concerned about the possibility of performance chasing. [Why trend following is a better strategy.]