Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

Keith Springer quoted by CNN Money- Investors Still Nervous About Stocks

CNN Money| Individual Investors Still Nervous About Stocks

NEW YORK (CNNMoney) @CNNMoneyInvest 2/5/13
Read original article HERE

With U.S.SP stocks near their all-time highs, individual investors are beginning to dip their toes in the stock market. But financial advisers say not everyone is eager to buy stocks again.

“We have some clients who are coming off the sidelines and getting more comfortable with stocks, but we also have some who want to wait a few more months before they do anything,” said John Foxworthy, an adviser at Phillips Financial in Fort Wayne, Ind.

Foxworthy said one of his clients, a physician in his 50s, grew particularly nervous last fall as uncertainty over the fiscal cliff debate and the outcome of the election took center stage. In the week leading up to the election, he decided to take all his money out of the stock market and move it into bonds. Foxworthy said he has yet to shift back to stocks.

“I reached out to him at the beginning of the year after the immediate crisis had been diverted, but his response was he’s still not comfortable and to check back in a couple of months,” said Foxworthy, whose firm manages over $500 million in assets for about 400 clients.

Related: What’s behind the bull market

And unlike previous big rallies, Foxworthy’s phone isn’t ringing too often with new clients on the other end.

“People are still very anxious — more so this time around than in the past periods of economic recovery,” he added. “The pain of the last downturn is still part of the social consciousness.”

In fact, enthusiasm among individual investors is already beginning to wane, according to weekly inflows into U.S. stock mutual funds, a gauge of small investor participation in the stock market.

While investors plowed a record $7.7 billion into U.S. stock mutual funds during the first full week of the year, they added just half that amount during the latest week. And when you consider the fact that they yanked more than $150 billion from U.S. stocks during each of the past three years, the latest inflows are just a drop in the bucket.

Brokerage firm TD Ameritrade (AMTD), which has started to track market sentiment, is also seeing a decrease in investor optimism. The company’s Investor Movement Index, which is based on data from TD Ameritrade’s base of 6 million retail accounts, edged lower in January after rising for several months.

Steve Quirk, senior vice president of TD Ameritrade’s Trader Group, said retail investors lightened their exposure last month in order to lock in profits.

CNNMoney’s Fear & Greed Index has also pulled back in the past few days. While it remains in Extreme Greed, the index, which looks at the VIX and six other indicators to measure the mood of the market, has slipped to 79 from a peak of 94 a week ago.

Even strategists who believe the market could move higher in the short-term are getting nervous. Keith Springer, president of Springer Financial Advisors in Sacramento, Calif., thinks stocks will blow past their all-time highs in the coming months. But he isn’t directing clients to change their portfolios based on that prediction.

Springer said his clients are primarily within 5-10 years of retirement or already retired.

“They can’t afford to lose money or even break even, so we invest for need — not greed,” he said, adding that “a majority of investors are still scared to death and waiting for the next shoe to drop.”

That shoe is likely in the hands of Washington lawmakers, said Gary Webb, CEO at Webb Financial Group, a Bloomington, Minn., firm that provides wealth management services to individuals and businesses.

“The fighting, bickering and lack of agreement and compromise could be the cause of a major correction or pullback,” said Webb, who says his clients are also still nervous. But he added that a favorable resolution to the budget battle could send the market “through the roof.”

While Webb’s clients are buying more stocks, they’re also hanging onto bonds and remaining in defense mode, he said.

“The market’s been going up for four years and it’s possible that it will pull back at some point. Our clients are prepared for both situations,” Webb said.

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.