The Financial Times noted in today's editions that investors made their largest withdrawals in the past ten months from American equity markets. Retail investors have led the rush to the exits.
The wisdom of small investors (I am among them) has been questioned in the past. "Smart" money has been associated, correctly or otherwise, with "big" money. While the Madoff scandal should have torpedoed that perspective, the lingering sense is that bigger is better. Once one enters into the realm of the giants, the argument gets muddy. Hedge funds are presumed "smarter" than mutual funds, and both are superior to 401(k) account options, many of which are dimly managed. Private equity might be the smartest money of all; the trick is to get a seat at the PE table.
If all of these options are troubling, there's always the mattress approach. Just beware of the bedbugs.
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