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One of the ways to tell if you should be buying stocks or not is to look at inflows to mutual funds. In the chart below, you can see a strong pattern.

The public poured money into mutual funds at the top of the market in 2000. Last year, they withdrew funds. They were over-invested in the years after the peak and now they are under invested. Stocks will be much higher before a switch in public sentiment brings the masses back to the market at higher prices.

Source: Mutual Fund Flow a Market Guide