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27th Consecutive Week Of Domestic Fund Outflows
Though we may sound like a broken record, just one more week, and we promise that the hot potato chasers will return to the broken market. After all who else will the Primary Dealers and HFTs offload their billions in AMZN, EBAY and AAPL shares to? And now back to your regularly scheduled propaganda.
This is the 27th consecutive week of domestic fund outflows, commencing with the May flash crash, and resulting in $85 billion in retail outflow YTD. It appears that neither circuit breakers, nor the Bernanke put have made any impression on investors, who continue to prove that the general American public (with a little guidance) is smarter than what the government, the Chairman, and the CNBC production crew give it credit for.
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Outflows Bitchez! Only the bots and Harry are buying.
POMO money flowing in faster than retail money getting out. What can go wrong?
its all your fault Tyler....now i cant even go back into the Matrix..
No more steak for you!
TastyWheat is delicious.
But how do they know what chicken tastes like? i mean, what if they got the taste wrong?
Nothing to see here. All flowing back into ETFs and managed accounts.
THIS IS NOT NEWS.
The red pill has destroyed my IRA...FREEDOM!
What it boils down to is this:
Virtually every money manager has become a chart monkey.
With whatever little money they have left, they are Heatmapping the leading stocks only and cutting all losers ASAP.
Not only that, "portfolio diversification" has gone out the window.
Instead of baby sitting 100 stocks in 12 different sectors, managers have now chosen to pile 100% of their funds into just 5 stocks.
Or maybe pile the entire fund into one sector ETF, where they can daytrade it and cut losses any time it drops more than 3%.
As there is less money available to invest, the last men standing are forced to take ever increasing concentrated positions on a few stocks based on chart movements alone.
Basically, all fundamentals, research, valuation analysis, etc. has been thrown out of the window.
The fate of the market now rests in just a few stocks:
FFIV
CMG
AAPL
NFLX
PCLN
Everyone is now staring bug-eyed, focused on just two items on the screen, watching which way they move.....
LOL....
Wonderful. Desktop background.....
The choice screensaver of the SEC.
Hardly. I sincerely doubt the existance of a sausage on that specimen. SEC is pure tranny.
PIGS
.
PIGS
PIGS
PIGS
PIGS
PIGS
PIGS
BITCHEZ
About 10 minutes ago I shot around 15 bucks worth of scotch through my nose when I read this.
Recovered some, eyes still watering.
Thanks for the laugh!!
Pretty much. Of course, as the B.S.Bernutty continues to hose his driver with champaign before the race starts, assuming this means victory, the concentration will...well...concentrate.
Robo for once I am actually in some agreement with you.
Nice rack.
Finally got that Johnny Jizz out of your eyes, and made a lucid post. Kudos.
If they're silicone, does that mean they move with XLK?
Possibly...but they will glow in the dark ;-)
Well...if we have to focus on only two things......
Spot on Robo...(no pun intended)...LOL.
Comments (and pics like these) remind me why I liked you in the beginning.
Wow, yes please.
What's scary is that my CEO refuses to even read about/acknowledge how broken the market is and only focuses on the ridiculous headlines and earnings expectations. We're a long only equity/fixed income shop, so I don't blame him. He'd have no income if we didn't constantly push stocks regardless of what's going on. Shit I need to look for a new company!
Thank you for coming back to us Robo.
Much appreciated.
Cheaper stock for the rest of us!
Managed Accounts
Nice snugglepups.
But...but...but...Barrons said funds were attracting $850 Billion this year....
http://blogs.barrons.com/focusonfunds/2010/11/10/report-funds-headed-to-...
"Report: Funds Headed To $850 Billion 2010 Inflows
By Murray Coleman
Mutual funds, exchange-traded funds and funds in annuities around the world are on-pace to attract $850 billion in net inflows this year, according to industry research consultant Strategic Insight.
The report said that more than half will wind up coming from international funds. That would follow trends reported elsewhere, including by EPFR Global and, for the U.S., the Investment Company Institute.
But the latest flow estimates by Strategic Insight project that this year’s totals are likely to fall just short of the $890 billion that went into stock and bond funds worldwide in 2009.
Still, net inflows this year should top those in 2006 and 2007, the forecast added."
A good pal just had to unload his IRA and pay the penalty. People are selling because they have to. While 1929 was awful the victims still had some money in their pockets and family jewels to sell. The trauma happened in 1930-33..
I was there in 1987 and 2000 when the wise guys had to find buyers and there were none.The market is a mile wide an an inch thick. The 1000 point drop day was real as there were NO buyers..anywhere..
Commercial...If any of you don't subscribe to Fred Hickey's " High Tech Strategist " find the $160 to do so. He is the best there is out there and his latest work is great.
This was my gut instinct too. I suspect that Americans are being forced to liquidate in order to survive. This is likely to accelerate as more people lose their unemployment benefits.
Looks like the destruction of the market will begin as some retail traders start to hop back in.
ICI data segmentation masks any flow into domestic nontraditional funds and that may be quite large.
Goldman white paper from September would make for a good read.
The money is not going to managed accounts. I don't have the hard stats, but in my experience, most retail managed accounts are in funds anyway.
Retail MF wholesalers are all telling the same story. Money is flowing into limited-term FI, floating rate, emerging markets, and asset allocation funds. Retail brokers know just as little as their clients and they're throwing it into funds like Ivy Asset Strategy and Blackrock Global Allocation so they don't have to be on the hook for allocation advice. This is the path of least resistance, and so will continue.
Consider also that the outflows my be cash-outs to pay the mortgage and medical bills AND get it liquid even with the penalties in case the gub'ment decides to confiscate that IRA or 401K or put a high tax rate or death tax on it.
there is also the baby boomer retirement wave, which started roughly 2007ish
these are mutual funds we're talking about right? why would anyone want to be stuck in an investment vehicle where the only exit is at market close? with all the huge up days too, why would someone then want to take a leap of faith and buy on the close after a 200 point rally?
that statement used to read domestic mutual equity fund outflows ... like the chart title is. but i guess that doesn't make the same point. that money ain't ever coming back into mutual funds. but it doesn't mean it just sits around doing nothing ... cash goes right where it's suppose to go and mutual funds aren't it. what's so hard to figure out about that? mutual funds are dead dead dead.
How far does the pool have to drain before we start to see all the naked cheeks?
And I thought I would have to keep praying for Robo. RT has indeed shaved his/her head and eaten locust with honey.
A few points.
Alternative (hedged, asset alloc., etc.) muts are growing at a rapid clip. To some degree they invest in domestic stocks and this flow offsets the domestic flow noted in the ICI data.
Yes, the traditional, long only domestic fund is a tired product category with far too much invested. Added to that is the trend to more proper (in-line to market sizes, including "alternatives" and better attention to sub-classes, etc.) allocations across asset classes. That to me is the real story: Fuddy duddy long only domestic stock funds are losing favor.
(that does not mean that retail flows into SPX stocks is lower (or higher) than it has been - that takes a whole lot more data and analysis to determine)
Good headlines, occasional analysis, but this story line is not one of deep dive journalism.
After recent scandals, transparency and yes liquididty are mut selling points. While noted previously and above they have arcane buy/sell and tax mechanics but they provide much better liquididty than the traditional hedge fund where you must sell weeks (redemption requests) before you know the price and may not be able to enter your order for months or years(lock ups), and you pay 2/20 or so.
Very few managed accounts are in muts - Managed accounts meaning "separately managed accounts - "SMAs") or the newer unified managed account - "UMA".
See the 2011 ZH Investment World Factbook for more detail.
EURO daily chart bearish warnings continue.
US Dollar daily chart bullish warnings continue.
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