Mom and pop investors are flashing a new warning sign that the equity bull market is about to come crashing down

Jason Paris / Flickr, CC

• Individual investors are pushing this year's rally in US government debt, and are on track to buy a record share of the government's long term debt according to The Wall Street Journal.
• It's a sign that many are remaining cautious despite stocks pushing to new highs.
• It's being fueled typically by investors approaching retirement who are increasing their bond holdings.
• Read more stories on Markets Insider.

There's yet another sign that stock investors are preparing for the worst.

Stock markets are at record highs, but mom and pop are shifting out of equities into government bonds because they fear the slowing economy and continued trade war tension will crumple stocks.

The Wall Street Journal reported that individual investors are buying more long term government debt than ever before, sending its already historically low yields even lower.

The newspaper said that assets in taxable-bond mutual funds had increased by a net $316 billion from January to May, citing data from Morningstar direct.

It means that individual investors are set to buy a record amount of newly issued longer-term debt for the first time since the Treasury started publishing data from its auctions.

Lack of confidence in the global economy is rife, meaning investors are flocking to safety - distorting the Treasury landscape and giving a strong indication that Wall Street is nervous.

Treasury department data on $1 trillion of government notes and bonds sold at auction on May 31, show that individual investors have bought 54% of the debt - on track for a national record, rising from 20% in 2010.

Additionally, much of this investment is coming from within the US. Domestic holdings of Treasury debt have increase by roughly $1.2 trillion since the end of 2018 - about six times the increase for foreign investors, according to the Wall Street Journal.

Of that, much of it is coming from retirees or people approaching the end of their careers, as usually those in that age bracket increase their bond holdings. And a population boom for Americans aged 65 and and over means the median age for bond buyers is rising, the WSJ says.

All of this means that despite the stock market reaching record levels, the rally is starting to show cracks.