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22nd Weekly Outflow From Mutual Funds Contradicts Earlier Statement From Bob Pisani

Tyler Durden's picture




 

It is not at all surprising that ICI's latest weekly flow report confirms what everyone with half a brain has known for a long time: the 22nd weekly outflow from domestic mutual funds is now in the history books. One more month, and we will have had an unprecedented 6 months of consecutive outflows, even as the market continues to levitate ever more incredulously on nothing but Fed POMO action (and Brian Sack's much more stealthy "collaboration" with Citadel), vacuum tube upward feedback-loop momentum on no volume, and the custodian banks' terrorist forced buy-in action in ETFs like SPY and IWM. Absent these three factors stocks would have been around 50% lower. In the meantime, and contrary to what CNBC was misrepresenting on national TV, the 22 weeks of consecutive outflows now amount to $76 billion in capital taken out by retail investors from domestic stock funds, and $75 billion YTD. And here is the scariest statistic for the administration, the Fed, and bankers around the world: in September $20 billion was pulled out from domestic stocks. This occured despite the nearly 9% surge in stocks. Which means that the bankers, the HFTs, the Fed, and whoever else may be accumulating stocks in expectation of retail jumping in for the latest round of passing the hot potato, is out of luck. With the failure of this latest attempt to sucker retail "dumb" money into stocks, cannibalization time for the big boys has finally arrived. Have fun passing the steaming bucket of explosive feces to each other, boys.

Weekly:

Cumulative:

And as for CNBC, can someone please explain to us how Mr. Robert Pisani can say, on national TV no less (albeit to an audience which according to Nielsen is at the lowest it has been in 3 years) at 10 seconds into the clip that, "we had inflows into stock mutual funds." Um, no. That's not true. In fact, someone less polite than us may say you are completely full of shit Bob. Luckily, since we are far too polite, and since all the data above is sourced directly from ICI, we would politely ask, Mr. Pisani, where on the above chart is this "inflow" you talk about.

We are eagely awaiting Pisani's reply.

 

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Wed, 10/06/2010 - 16:51 | 630412 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

"Battam line.....battam line...........battam line............"

Wed, 10/06/2010 - 17:51 | 630559 NOTW777
NOTW777's picture

the new normal is to lie

Wed, 10/06/2010 - 18:09 | 630590 prophet
prophet's picture

Unprecedented action (since '82 '98 '07 you pick it) means no normal.

“I think ‘no normal’ is a good phrase, as opposed to ‘new normal,’ ” Gundlach, chief executive officer of DoubleLine Capital LP, said during an interview in his office in Los Angeles."

(from Bloomberg yesterday http://www.bloomberg.com/news/2010-10-05/gundlach-only-fund-beating-pimco-total-return-shows-why-there-s-no-normal.html)

 

Wed, 10/06/2010 - 18:54 | 630680 rocker
rocker's picture

We should call it the  "Scudlow Giddy Hour"

Wed, 10/06/2010 - 21:30 | 630980 makeyoumiss
makeyoumiss's picture

A simple, but profound statement.

Wed, 10/06/2010 - 23:20 | 631224 chopper read
chopper read's picture

Bob "piss on us" Pisani = JOSEPH GOEBBELS

 

...what a propagandizing piece of shit.  

Wed, 10/06/2010 - 16:51 | 630414 101 years and c...
101 years and counting's picture

"Have fun passing the steaming bucket of explosive feces to each other, boys. "

Thats about as accurate as it gets.  At some point, one of the players won't catch that steaming bucket of explosive feces and every algo will be turned to sell...or just turned off as W&R sell another 20 ES contracts unexpectedly.

 

Wed, 10/06/2010 - 16:59 | 630434 MikeyKid
MikeyKid's picture

Fucking snorted soda out my nose on that quote... TD keeps topping himself with these snips of late.

 

Pure gold... er - maybe that term should be "Physical gold" nowadays. =)

Wed, 10/06/2010 - 17:43 | 630544 mikla
mikla's picture

"Have fun passing the steaming bucket of explosive feces to each other, boys. "


...snorted soda out my nose on that quote... TD keeps topping himself with these snips of late.

+1 HAHAHAHAAAAA!

That was my pull quote too -- TOO FUNNY!

And as for CNBC, can someone please explain to us how Mr. Robert Pisani can say, on national TV no less (albeit to an audience which according to Nielsen is at the lowest it has been in 3 years) at 10 seconds into the clip that, "we had inflows into stock mutual funds." Um, no. That's not true. In fact, someone less polite than us may say you are completely full of shit Bob.

Maybe Bob was that *one* investor?  We had *net* outflows, but maybe Bob was just so pleased inflows weren't zero!

Wed, 10/06/2010 - 17:09 | 630456 Spirit Of Truth
Spirit Of Truth's picture

I just finished blogging on "quants" and what this means for Wall Street:

http://thespiritoftruth.blogspot.com/2010/10/wall-street-is-googled.html

 

In terms of Hyman Minsky's "financial fragility", what has developed is absolutely without historical precedent and utterly insane.  The system is over-sensitized to such a degree that the littlest straw will break the camel's back and to everyone's shock and chagrin cause HYPERDEFLATION in asset values, i.e., a crash of ridiculous magnitude.  We are in the season when this typically occurs.

Wed, 10/06/2010 - 18:00 | 630581 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

cause HYPERDEFLATION in asset values, i.e., a crash of ridiculous magnitude.

Yes, there's the ticket. Everything is going to implode!

Wed, 10/06/2010 - 20:57 | 630928 Conrad Murray
Conrad Murray's picture

That was an eclectic collection of videos haha.  Enjoyed the post, cheers!

Wed, 10/06/2010 - 23:54 | 631282 StychoKiller
StychoKiller's picture

Only two more days to the release of "Inside Job" -- next week should tell the tale!

Wed, 10/06/2010 - 16:53 | 630421 Commander Cody
Commander Cody's picture

There are no more investors.  Only traders, gamblers, electronic thugs and Ben.

Wed, 10/06/2010 - 17:53 | 630564 midtowng
midtowng's picture

How long can they keep pushing this up with less and less dumb money? I'm surprised they got as much movement as they did in September.

Wed, 10/06/2010 - 16:57 | 630428 Pladizow
Pladizow's picture

Dont want to defend Bob...... but..... I think he meant to say inflows into equity ETF's, not MF's, as that was the focus of the piece.

Wed, 10/06/2010 - 17:01 | 630443 Cruel Aid
Cruel Aid's picture

True dat, which is not good for the fund managers either way. I believe ETF's require little maintanance. Not good for the employment figures, like the market is not already swamped with MBA's

Wed, 10/06/2010 - 17:10 | 630462 Tyler Durden
Tyler Durden's picture

There is a rather massive difference between ETFs and mutual funds. If Mr. Pisani does not know what it is, we are happy to send him some literature to assist him in anchoring his market flow segment with correct information.

Wed, 10/06/2010 - 23:33 | 631249 chopper read
chopper read's picture

Bob said "ETFs AND mutual funds".  it was quite clear. 

Wed, 10/06/2010 - 18:11 | 630593 GNandGL
GNandGL's picture

I don't want to defend the Piss-ant either, but besides co-mingling ETF's and mutuals, he was also talking about all equity funds, not just domestic.

Still, he is parroting the GE line and as such should be ignored.

Wed, 10/06/2010 - 23:39 | 631256 chopper read
chopper read's picture

he's a cheerleading hypemonger that deserves no defense.  he's a grown goddamned man who choses to lead widows and orphans into this market if it curries favor with his bosses.  history will reveal this clown to be bootlicking scum.  he probably just called the top of the market.  money is serious business and he deserves no quarter.  he is of no value to his countrymen.  there was not a hint of caution in his voice.  fuck him.   

Wed, 10/06/2010 - 16:58 | 630433 Cognitive Dissonance
Cognitive Dissonance's picture

And as for CNBC, can someone please explain to us how Mr. Robert Pisani can say, on national TV no less (albeit to an audience which according to Nielsen is at the lowest it has been in 3 years) at 10 seconds into the clip that, "we had inflows into stock mutual funds."

Mr. Piss-on-me (Pisani) has the GE (er Comcast?) put, meaning he can say anything he wants as long as it's intended to pump the market, and no harm shall come to him.

Wed, 10/06/2010 - 16:59 | 630435 anony
anony's picture

No worries. 

Ben has a tacit agreement to buy anything that the usual suspects want to unload at top price.  And he'll hold them so that they don't disturb the top 5% of the world's well off.

It's an offer they can't refuse. 

So jump in, the water is fine.

Wed, 10/06/2010 - 17:00 | 630437 curbyourrisk
curbyourrisk's picture

I got a MINT house in Nassua County I would love for you to buy Ben...

Wed, 10/06/2010 - 16:59 | 630436 curbyourrisk
curbyourrisk's picture

Pisshead's reply??  I highly doubt it.  He is not capable of reading ZeroHedge as it would require more than half a brain.  Even having it read to him don't work.  Forget about a response....it's not coming Tyler.

Wed, 10/06/2010 - 17:02 | 630445 Gordon Freeman
Gordon Freeman's picture

No, I saw it, and while the focus was indeed ETFs, he went  above and beyond his pay grade to work the word "inflow" into his piece as much as possible, and specifically said the words "mutual fund" as associated with all that wonderful (and imaginary) "inflowing"...

Wed, 10/06/2010 - 17:17 | 630483 ShankyS
ShankyS's picture

1:39 - "we had four consecutive weeks of inflows into sotck mutual funds in september"

 

 

Wed, 10/06/2010 - 23:42 | 631264 chopper read
chopper read's picture

quite clear.  quite clear indeed.  

Wed, 10/06/2010 - 17:29 | 630466 hedgeless_horseman
hedgeless_horseman's picture

False advertising is making false statements to promote your business. 

What is making false statements to promote your advertisers' business?  Well at CNBC they call it, "news."

I also noticed in this, and the earlier piece with Kyle Bass, that up or down the CNBC index tickers at the bottom of the screen are always green.  Red is so alarmist; might cause viewers to sell?

Wed, 10/06/2010 - 17:30 | 630517 Everyman
Everyman's picture

False information presented as "news"+Pravda.

Wed, 10/06/2010 - 17:14 | 630474 Caviar Emptor
Caviar Emptor's picture

Market is like a Roadrunner Cartoon: Wile E. Coyote still running full steam through pure air, edge of the cliff way behind him. You know what happens next.

Wed, 10/06/2010 - 17:15 | 630476 RheologyMan
RheologyMan's picture

Pssss!...Pisani is...no wait.....has "no credibility left"!!!!

Wed, 10/06/2010 - 18:26 | 630616 -1Delta
-1Delta's picture

http://vodpod.com/watch/1470529-south-park-the-importance-of-saving-money

 

This could be the reason for the outflow... lol

Wed, 10/06/2010 - 17:18 | 630484 gwar5
gwar5's picture

I've been taking mine out as fast as I can.  No sense leaving it to the digital subractors.

Wed, 10/06/2010 - 17:18 | 630487 RecoveringDebtJunkie
RecoveringDebtJunkie's picture

So the global capitalism system has not only lost demand for real products in the face of super excess capacity, but cannot even "manufacture" demand for virtual financial assets, except for a few "safe haven" sovereign bonds, and even that wont last for too much longer. Say what you will about Marx's idealistic views about Communism, but he was certainly prescient about the path capitalism would take.

http://peakcomplexity.blogspot.com/2010/09/complexity-manifesto.html

 

Wed, 10/06/2010 - 17:29 | 630504 Spirit Of Truth
Spirit Of Truth's picture

The system is geared to self-destruct, the question is what to put in its place after the dust settles.  Vladimir Putin's birthday is tomorrow.  I don't think the reigns of global power should be handed over to him and his sociopath ilk, but, and few perceive this, history is headed in this direction.  It's up to "We The People" to turn the tide IMHO.

More at my blog - http://TheSpiritOfTruth.blogspot.com

Wed, 10/06/2010 - 18:29 | 630625 doggings
doggings's picture

I looked at your blog youre a complete wacko.

Russia was behind 9/11 were they? :)

Wed, 10/06/2010 - 19:02 | 630690 israhole
israhole's picture

LOL, everybody knows Israel's Mossad along with a few traitors in our government did 9/11.  Then we have the Larry Silverstein types.  I can't believe nobody has stuck a fork in his head yet.

Thu, 10/07/2010 - 06:28 | 631689 Mentaliusanything
Mentaliusanything's picture

 I believe you will find that that a group of very smart structural engineers were behind 9/11.

Hit the sweet spot they did. No shit. would take a Cray or two to crunch those numbers. Problem was they forgot to calculate for 'made in the USA'. Japan made the same error. When its made in the USA its made to take a fair pounding before it goes down. The problem in the calculation is what happens when it gets back on its feet. It's the people you see, they have a disposition (ingrained) to stand up and being slow to anger, give a fair account to those who assume they are 'sleeping giants'. I will say no more because its proven history.

Wed, 10/06/2010 - 17:23 | 630496 Minion
Minion's picture

Elliot Wave update:  The S&P is now perfectly aligned in both channel and time ratios between the past two cycles, at the very conclusion of the move up.  With the temporary suspension of POMO, it almost seems engineered.  We shall soon find out!  ;)

Wed, 10/06/2010 - 17:27 | 630505 cocoablini
cocoablini's picture

Some suckers are still left stuck in 401ks,mutual fund- but not a lot. Basically the HFT banks are running supply squeeze. Like Diamonds, in their natural state the stocks are near valueless. But DeBeers runs a monopoly, and creates a supply vacuum with inventory and dealers. Diamonds would be otherwise useful, but common stones. State street et Al. Are just holding all this stock in inventory and the HFT bots spoof volume and pricing. The last drop in the markets were in conjunction with HFT bot inquiries, co gressional bank legislation and European sovereign panic. Look for a crash if the government starts going hardball on Skynet. Otherwise, fuggedaboudit. Retail smart mo ey knows it's getting scary. Mom and Pop have been extracting savings to pay for mortgages and food with record high unemployement so they are out. The hedges go in and out trying to play the FED. What a GREAT fucking "investment" environment. Or maybe OBama is OK with the bot banks self- emolating themselves and cratering the old markets. Then they create a new market- fully government controlled and assigned asset valuations?

Wed, 10/06/2010 - 17:39 | 630536 Commander Cody
Commander Cody's picture

Accounting rules will be suspended for national security reasons (and to suppport election goals).

Wed, 10/06/2010 - 17:54 | 630566 rapacious rachel wants to know (not verified)
rapacious rachel wants to know's picture

what elections?

Wed, 10/06/2010 - 18:27 | 630619 mynhair
mynhair's picture

Dude, the HFTs have subpennied some of your N's.

Wed, 10/06/2010 - 17:26 | 630508 Amsterdammer
Amsterdammer's picture

So the banksters pocketed most of the September gains?

Indeed, the end-game is nearing..

Wed, 10/06/2010 - 17:26 | 630509 andyupnorth
andyupnorth's picture

This makes perfect sense if the baby boomers are taking their money out of mutual funds and managing it themselves in the stock market, does it not?

Wed, 10/06/2010 - 17:48 | 630554 Panafrican Funk...
Panafrican Funktron Robot's picture

The boomers (that have any money left) are mostly buying into bond funds.  There is a strong inverse correlation between bond and equity flow of funds.

Wed, 10/06/2010 - 21:48 | 631009 Ned Zeppelin
Ned Zeppelin's picture

I was thinking "outflows" mean cashing-in-to-pay-bills flows, rather than investing in bond funds.  Do you think insiders are the only motivated sellers in this market?  Needing to pay the fuel bill for that first winter tank of oil for the furnace will motivate you. 

Wed, 10/06/2010 - 22:40 | 631128 andyupnorth
andyupnorth's picture

The retired middle class that I see (up here in Canadia) are getting money from 2, 3, or even 4 places at the same time (private and public pensions, federal/ provincial, widow/widower). The only reason they're touching their nest egg is because the government is forcing (or will force) them to cash out a tiny fraction of their RRSP's every year... which they often intend on reinvesting into either the stock market or real estate...

Wed, 10/06/2010 - 17:28 | 630512 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Tyler,

Don't forget that Bob Pisani still thinks the Flash was all W&R's fault ...

Wed, 10/06/2010 - 17:38 | 630530 gwar5
gwar5's picture

Wow. Look at that chart.

The market will crash and they'll blame free market capitalism again. Every good marxist revolution needs a scapegoat.

Wed, 10/06/2010 - 17:44 | 630548 prophet
prophet's picture

I think it was one of the GS pieces from last week that talked about net inflows to a certain segment of domestic ETFs, perhaps he was referring to that. 

"national TV" - sounds important, I'll make a note to check into it. 

-profd 

Wed, 10/06/2010 - 19:12 | 630716 rocker
rocker's picture

I think I found it on the 52 Week high list. " VTHR "    ETF's are being born every day.  Why ???  Hmmm.

Wed, 10/06/2010 - 19:26 | 630598 prophet
prophet's picture

Kick the Can

Hide and Seek

Duck Duck Goose

Musical Chairs

Dodge Ball

Red Rover (my favorite)

Capture the Flag (my second favorite)

Steal the Bacon

House of Cards

Hopscotch

and now ... 

Pass the Bucket

Wed, 10/06/2010 - 18:54 | 630681 davidsmith
davidsmith's picture

Gee, remember two weeks ago when I said the issue was not monetization, but rather, stealth monetization?  If you only knew what was really going on....

 

 

(and Brian Sack's much more stealthy "collaboration" with Citadel),

 

 

Wed, 10/06/2010 - 19:11 | 630713 Implicit simplicit
Implicit simplicit's picture

My understanding is that outflows make no difference. The economy is so bad that the Fed has to keep printing money;therefore stocks can only go up. After all, this is what happened in Zibabwe.

So, the smart money says buy stocks because the alogos and shitty economy and accelerating deficits will drive up stocks to outlandish levels as the our currency collapses.

This is fucked up. The market will crash when the next algo cuts a fart. 

Wed, 10/06/2010 - 19:43 | 630773 Rider
Rider's picture

This has nothing to do with Bob being the gayest rose, after Lies-man of course, is about that punk being an outright lier.

Wed, 10/06/2010 - 20:24 | 630863 PuppetRepubl1c
PuppetRepubl1c's picture

Tyler can you post a chart of S&P 500 performance vs cumulative POMO cash flowing into the market?  It might be nice to see all 3 on one chart even! 

 

If i get time i might do it but slammed right now at work sadly.

 

 

Wed, 10/06/2010 - 20:54 | 630923 Hephasteus
Hephasteus's picture

These guys keep playing the same games.

The lying game.

The crying game.

The dying game.

The attention whore game.

Wed, 10/06/2010 - 21:10 | 630949 Buck Johnson
Buck Johnson's picture

Pisani has been rein'd in by CNBC, because of the other comments he's made that told the truth about who's buying these treasuries directly other than china and how dismal the dollar is doing.  They must have went to  him and told him not to tell the truth. 

Wed, 10/06/2010 - 21:44 | 631003 Ned Zeppelin
Ned Zeppelin's picture

well actually, Pisani is telling the truth. I have it on good authority that $12.97 was invested by someone just last week. 

Did you by any chance mean "net inflows?" 

Wed, 10/06/2010 - 21:54 | 631020 DavidC
DavidC's picture

When I see things like this, despite the crap I perceive they're saying, I wonder whether I AM missing something when the market continues to GRIND higher.

DavidC

Wed, 10/06/2010 - 22:45 | 631152 cjbosk
cjbosk's picture

You mean Bob Piss-on-it, yeah I had to do a double take while trading and heard the filth pour from his lips...he's an f'n bafoon!

 

Piss-on-it..

 

 

Wed, 10/06/2010 - 22:53 | 631170 Goldenballs
Goldenballs's picture

Gold through 1350 .... Go GoGo Gold.

Thu, 10/07/2010 - 01:31 | 631414 StychoKiller
StychoKiller's picture

Excerpted from the GoldenJackass' latest post (Oct 6th):

In case sleepy observers have not noticed, Team Obama in the economic dugout just disbanded. Nobody is left except a junior Senator posing as President, whose words are impressive but actions echo inside great voids. In his hip pocket is found a copy of "Dialectical of Materialism" without much public notice. The helm is empty. The Ship of State is adrift, a derelict vessel. Peter Orszag is gone (broken budget, spiraling deficits). Christina Romer is gone (wise mediocrity but ignored). Lawrence Summers is gone (loser preppy). Cindi Sparks is gone (stimulus plan architect). One can only hope that Tim Geithner departs too. Although not on any economist team, the exit of Rahm Emanuel should be interpreted as meaning that Obama is a political liability. Running for Chicago Mayor might raise difficult questions on his resume, best not asked, since he wears two hats. The legacy of US economic counselors in the past two or three decades has been heresy reinforced by stupidity, wrapped in rationalization, embellished by nonsensical obfuscation, touted as erudite, ignorant of history. In the current pathogenesis of systemic failure and debt default, Gold wins! The only question is how the dead will litter the battlefield.

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