25th Sequential Stock Fund Outflow, $81 Billion Year To Date
To all those (most Bob Pisani) who hoped last week was going to be the last sequential outflow from domestic equity mutual funds, after a modest decline in redemptions, we have some bad news. Today, ICI reported the 25th outflow in a row. Total YTD money redeemed is now $81 billion. From the market bottom in July, all the way to the current 2010 highs, the market has seen $51 billion in 16 sequential outflows. So to recap: mutual funds are not buying, pensions are not buying, retail is no longer even remotely interested in touching stocks... yet the market surge won't end. Some 2010 market highs money can't buy. For everything else, there's Bernanke Card. It is clear now that in the Fed's pursuit of chasing the "wealth effect" of the 1,000 or so remaining traders, logic will simply not stand in the way.
And even if this eventually turns positive: whether it is next week, next year, or never, what does it matter? Obviously plain vanilla money is no longer relevant to asset flows. In a central planning regime, all asset levels are determined by one person and one alone.