Are small investors finally fleeing the stock casino?

August 21, 2010 by Peter · Leave a Comment 

It looks like the economic pain of the past couple of years is finally changing attitudes about gambling investing:

Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.

If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.

For individual investors, the lure of easy money in the market invariably crashes into the reality of a game rigged in favor of big players like Goldman Sachs.