Where are the big money institutions putting their money right now?

MNSL answered one year ago …

You have to be very careful in present market situation. It is better to avoid stocks with more institutional investors. We must not forget they have research team and they can identify future trend in advance. What we must do is when they try to dump stocks with big quantity we must not pick unless we identify that there is a value in the future.

There are different types of institutional investors. Some are expert in emerging stock markets. When they see that they can’t earn much here they put money on foreign stock markets. Can you believe when some small emerging markets know that foreign intuitional investors are buying any particular stocks everybody is trying to buy irrespective of fundamentals and within short time stock price has rocketed by 200%? When Institutional investors dump their holding prices will come down and individual investors will have to bear the pain.

But there are some good institutional Investors they invest for long term and they really support the stock price. I like these companies.

Then there is another category: They like to acquire other companies to reduce competition and control market. If you can identify in advance these target company you will get some capital gain. All over the world there are opportunities if you can do some research. Some institutional investors invest in agriculture and animal production related stocks and commodities.

I suggest don’t invest in some hot commodity that appreciated more than 500% last 05 years. Also you can see some institutional investors shift their funds country to country to get advantage according to situation. Time to time great bull market change from country to country. Try to identify sectors, stocks, commodities and countries in advance before institutional investors come into the scene. For example recently some Institutional investors started to invest in agriculture sector and in some emerging countries.