Malkiel

The Current Rally Should Continue Until Retail Investors Are Sucked In

The retail investor is already in this market--who do you think owns all those mutual fund shares? Most retail investors have accepted the wisdom of doing their investing in tax-deferred retirement accounts and are dutifully having their automatic deduction taken out of their paychecks twice a month and deposited into whatever mutual funds they've checked off with their 401k plan. The adventurous few who buy in a taxable account are still sitting on last Fall's purchases in order not to get hit with cap gains losses of 15% based on their 28% average tax bracket. So don't expect to see any panic buying from mom and pop, expect to see it from their fund managers...