Mom and Pop investors announce a new warning sign that the bull market is about to collapse

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• According to the Wall Street Journal, individual investors are pushing up this year on US government debt and are on the cusp of acquiring a record share of the government's long-term debt.
• This is a sign that many remain cautious despite actions reaching new heights.
• It is usually fueled by investors approaching retirement who are increasing their holdings of bonds.
• Read more stories about Markets Insider.

Another sign is that equity investors are preparing for the worst.

Stock markets are at record highs, but parents are moving away from equities to state bonds, as they fear the slowdown in the economy and the persistence of tensions related to the trade war that will ruin the actions.

The Wall Street Journal reported that individual investors are buying more long-term debt than ever before, further reducing yields, which were historically low.

The paper says mutual fund holdings of taxable bonds increased $ 316 billion net between January and May, citing data from Morningstar.

This means that individual investors are willing to buy a record amount of long-term debt newly issued for the first time since the Treasury published auction data.

The lack of confidence in the global economy is widespread, which means that investors are rushing for security, which distorts the Treasury landscape and gives a strong indication of Wall Street's nervousness.

Treasury Department data on $ 1 trillion of government bonds and bonds auctioned on May 31 shows that individual investors bought 54% of debt – on track to become a national record, rising from 20% in 2010.

In addition, much of this investment comes from the United States. Domestic holdings of Treasury debt have risen by about $ 1.2 trillion since the end of 2018, six times more than foreign investors, according to the Wall Street Journal.

Much of this money comes from retirees or people nearing the end of their careers, because in most cases people in this age group are increasing their holdings of bonds. And a demographic boom for Americans aged 65 and over means that the median age for bond buyers is increasing, according to the WSJ.

All of this means that, even though the stock market has reached record levels, the recovery is beginning to show signs of weakness.