U.S. investors miss out on major gains

Bloomberg reports U.S. investors pulling out of the market because of lingering worries about the financial crisis have missed out on $200 billion in stock gains.

“The retreat shows that even the biggest gain since 1998 failed to heal investor confidence after the financial collapse that wiped out $11 trillion in U.S. equity value was followed by record price swings in equities, a market breakdown that briefly erased $862 billion in share value and the slowest recovery from a recession since World War II. Individuals are withdrawing money as political leaders struggle to avert budget cuts that threaten to throw the economy into a new slump,” the report explains.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.