A quick indicator of investor confidence is to look at what the common individual did, and last tuesday - AonHewitt announced that massive amounts of dollars moved from stocks to bonds.
"Aon Hewitt, a Lincolnshire, Ill.-based human resources consulting firm, says that 401(k) trading account activity on Tuesday showed the third highest transfer amount out of equities since the firm began tracking such data in 1997. The firm tracks 4.7 million individual 401(k) accounts, and notes that a typical day’s trading volume lands in the $300 million to $400 million range. But Monday’s volume rose to $862 million and Tuesday’s to $900 million. Hewitt says that 95% of all 401(k) trading activity has been out of stocks and into bonds during the last week of trading."
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