29 Consecutive Equity Mutual Fund Outflows

Tyler Durden's picture

Any minute now, any minute, we promise, investors will regain all their confidence in this non-charade of a market which reflects all the fundamental realities of the economy. Just not yet: last week saw the 29th consecutive outflow from domestic mutual fund flows, which incidentally surged to $2.8 billion from the $677 million outflow the week prior. Sarcasm aside, nobody except for CNBC's Fast Money is putting money in the market. Well, so are the Primary Dealers, and to an extend the Hedge Funds. Although now that the letter no longer have access to pervasive insider info courtesy of expert network, it may be up to just the Fed, HFT and the 18 primary dealers to take the Dow to 36,000. After all, there is a wealth effect to be created. Also, ICI reports last week muni funds saw a massive $4.8 billion outflow. Have no fear - this will also be spun as bullish. Incidentally, from its 2010 lows in July, the market has risen to fresh all time highs as investors have pulled just under $60 billion from mutual funds. Once Bernanke is done with his latest mandate which is nothing short of genocide, he is a shoe in to replace David Copperfield at the MGM.

And as a reminder, this is what insiders did last week:

In the first full week of the latest iteration of post-QE2 POMO,
which was supposed to see a dramatic ramp in stocks, the only thing we
have seen is the biggest insider buying to selling imbalance since the
data has been tracked. Overall, selling by S&P500 insiders was
8,279.5x times greater than buying (per Bloomberg).
There were 5 insider
buys for a total of $150,673, and 117 sales for a total of
$1,247,500,249. There is no point to even discuss what this data point

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Beanie Baby Bubble's picture

To an extend, I recommend this posting.

doolittlegeorge's picture

to an even greater extend i recommend this posturing...

johngaltfla's picture

Who cares?!?! Bristol got jobbed!


(Who's Bristol? I'm just repeating what the other sheeple are saying....)

Problem Is's picture

Palin McMILF says...
Stop jobbing her daughters bitchez...

Even though Palin is the one who started jobbing her daughters in the first place...

(I'm just repeating what our brilliant political class of leaders are saying...)

Racer's picture

This is exactly what they want.. no-one in the market apart from HFT hot potatoeing.. it can then go up forever with not a single down day ever again.

Then ZimBen and the Inkjets can say look the market is forward looking so things MUST be superb everywhere!

Rainman's picture

......yippeee !! Gravity defied !!

unununium's picture

Dumb question: if everyone is out, isn't their wealth unaffected by the market?


Must be the other-people's-wealth-effect.

ElvisDog's picture

Don't be ridiculous. Ever heard of the prisoner's dilemma? When the market gets high enough, one of the big boys will cash out. This event will set off a panic as everyone will rush to the exits, and the truth will be revealed - that there is no real bid underpinning the market. To assume that no one will ever try to take their paper profits is silly.

ebworthen's picture


Fewer and fewer dollars chasing more and more gain.

HFT big boys milking who is left with two day cycles of -150 then +150, or the longer cycles to bleed out the more savvy.

The average person saw the game a while ago, and those that could or can, are leaving.

Dr. Engali's picture

Retail out. Insiders out. Institutions out. Nobody left but Ben and the HFT holding the bag. Good thing they are providing the liquidity for everybody to get out. It's gonna be something to see it fall once the robots shut down.

Arius's picture

if thats the case, where are they investing the money?

they are not just holding cash are they?

Dr. Engali's picture

Bonds. The next asset to get creamed.

Arius's picture

interesting...they all go like sheeps alltogether

feels good to have a front row seat in this theatre

rocker's picture

Just maybe some did this over the past two years. Closed three of five accounts. Two of them being IRA's, paid the taxes and put half the cash in a safe deposit box. Bought, Gold, Silver, Platinum and Palladium with the other half. Put that right next to the cash in the safe box. It is all your legal right to do. Two accounts left, one being cash. And that is what it is, sitting their in cash. NO positions. The IRA has a couple China stocks and GLD, SLV, PTM, JJN, and a large basket of mining stocks. AUY, DNN, SXRZF, EGI, EGO, KBX, MVG, NAK, PALAF, MGAFF, LYSCF, NILSY, NXG, PCX, PZG, TC, TGB, TIE, TTT, URPTF, UURAF, NHYDY and XSRAY.  That's what I did. Enjoy, my heaviest are DNN, TC, LYSCF, NILSY and XSRAY. To be added are DMMIF, CREQF and DROOY. Always keep 50% cash in account to trade. 

China stocks recently added are LLEN, CNAM, CHOP, CHGS CSGH and added today are FUQI, CBAK, SCOK. 

I see this as the only way I can protect myself from "the Bernanke".  Not to many people on Zh will show their hand. I have no problem.  I wish more would do so we could all learn from each other.

P.S. This is how I saved myself from the EWI scumbag Robert Prechter and his bad advice selling fear. Save Yourself !!!

unununium's picture

You want PHYS and PSLV, not GLD and SLV.

Iam_Silverman's picture

"You want PHYS and PSLV, not GLD and SLV."

Your keyboard must have cut out on you.  You missed a couple of letters, and then, nothing but static.

Here, let me fix it for you:

You want PHYSICAL . (period)

rocker's picture

Thanks unununium, after checking it out. You are right.  To other response, I have physical, as said, that part is done.

The only new physicals I will add are Rhodium and some other REE's.  You can actually buy some of them. That's why I like NILSY. It's the Rhodium.  

Cognitive Dissonance's picture

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.


Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

Yeah.....right. The only thing worse than a dangerous animal is one that is seriously hurt and cornered. While the USA may be hurt, it's still very dangerous and China and Russia both know this will be seen as placing the USA in a corner.

Let the fireworks begin. At first it will play out as regional conficts. Can you say Korea? Then it escalates from there.


Arius's picture


it seems to me they talked about it since last year.

also, you have the gulf countries talking about their own currency - thats the real deal because it effects the currency of choice for oil...

Id fight Gandhi's picture

Well I unfortunately have had cnbs on all day (first time in a while) and they said nothing of this so it doest matter. Retail stocks is all that matters. Buy buy buy.

Go4er's picture

This is big news, why wasn't this on the MSM front pages? 


sarcasm off...

hambone's picture

It gets less impactful the more you say it but don't do it (they stated the same last year but did what?).

Jaw"boners" of the world unite.

Sudden Debt's picture

I actually think this is a attempt of the Russians to try to stabilize their rouble. By trading in dollars they had twice the losses.

Also, most of the export done between Russia and China is done in the border regions and are all resource related (wood from the siberian forests) and oil and gas, also from siberia.

The import from China to Russia is about equal size of the exports but the balance is desturbed by the dollar fluctuations because Russia pays in dollars for the imports and the chinese buy with yuans in the border regions.


Cdad's picture

Revolution!  Defund the Mutual Fund industry!

monopoly's picture

Tyler, you are too much. MGM-Copperfield. lol This is all so surreal. Where am I. What planet am I on.

StychoKiller's picture

Without a moral compass, who knows?

hambone's picture

It's just the American consumer pulling out a little spending cash for a very merry Christmas. 

BORT's picture

The working rate is now back to the year 2000 rate, at about 125 MM people.(Down from 133 MM)  There are also about 4 MM per year of boomers who reach 62 and probably go on social security each year.  IF they also begin to take 4% per year from their 401K each year to supplement their SS, and have on average $250,000 in their 401K, that would amount to 4MMX$250,000X4%=$40 B per year in additional withdrawals each year.  It all seems to make sense.  If this is true, teh withdrawal of money from the market by individuals is likely to continue.  Less going in to 401K, combined with the beginning of withdrawals.  As confirmation, old age pension income is up $43 Billion this year so far, even with no increase in benefits due to no cola

   Old-age, survivors,
             disability, and health insurance benefits 1,187.3 1,190.7 1,195.9 1,207.9 1,207.9 1,208.6 1,219.5 1,221.5 1,229.3 1,230.5
hambone's picture


I like you're thinking but guess your "average" account of $250k is a little high - look for the median which is actually around $61k for retirees (folks with very large accounts and lower withdrawals skew the average).


BORT's picture

Thanks.  I am trying to figure out how spending is continuing at current rates with no increase in overall employment.  Something has to give, and I am thinking it is savings, and some has to continue to come out of the market.  We used to talk about macro market trends when I was younger, and we all figured this would be a bad secular time when boomers started to live off savings.  This may not be a short term trend.

hambone's picture

I guess the considerations to be taken are the median accounts, some kind of formula for mandatory minimum distributions from age 70, and the impact and utilization of Roth IRA's that do not require distribution.

I think given the large number of folks who opted to take early SS...they are also likely drawing heavily on their 401k's / IRA's.  This combined w/ working folks feeling less able / confident to fund existing retirement accounts.

My guess is this isn't retail investors leaving (per se) but folks accross the spectrum withdrawing to live (in unemployment, in retirement, in distress).

This may well be a seat change.

Id fight Gandhi's picture

They said people arent paying mortgages and buying everything retail.
All is well!

The only reason we had any recovery from the last recession was housing, those jobs around it and the ATM equity loans.

Maybe the fed will issue the American public a credit card. The fed card.

doolittlegeorge's picture

"blame the Irish."  In the meantime "Dow up 150" and "it's Europe that's collapsing and South Koreans getting killed."  i understand: "how can evil triumph...AGAIN!"--but i have to see (and i really don't like to say this, i really don't) how "truth, justice and the American way" works as an investment strategy. Insofar as the last two years are concerned and "relative to equities"--"not a damn thing" as far as i can tell.  As such I am also long "lying, cheating and stealing--while snakin' the neighbor's wife" right now.

mule65's picture

What's with the DXY/SPY disconnect today?

Id fight Gandhi's picture

You mean the correlated trade usd down spy up?

Don't know claims are better? And the day before thanksgiving is up 75% of the time.

But you're right, dollar above 80 will take air of the market, euro is still tanking. You'd be a damn fool buying long holding over the long holiday. Last year Dubai world went down, who know which eurozone is next.

Boilermaker's picture

I just saw on CNBC that there is a new consumer "frugal fatigue" where people are 'tired' of worrying about money and are ready to spend like drunken sailors.

You know...cause.

Waterfallsparkles's picture

I think they are right.  I just went out and bought a new pair of slippers for $10.00.  You can put that in the Bank.

I am trying to help the Economy.

Boilermaker's picture

That's so eerie...I just bitched out my wife for spending $10 when she didn't 'need to'.

Sure is a small world.

Id fight Gandhi's picture

My wife is a coupon and deal seeker. It's a game to her. Fine with me. We do the same stuff, same trips, etc. Pay less. Pay cash. What a concept.

Boilermaker's picture

....be CAREFUL, you might get the frugal fatigue...it's dangerous.

Iam_Silverman's picture

"...be CAREFUL, you might get the frugal fatigue...it's dangerous"

One quick cure is a trip to the filling station!  Main tank at 1/2, aux tank at 1/2 and then...WHAM! - $128.00 worth of diesel will stimulate the frugal response again - no fatigue here!

Arius's picture

"ready to spend like drunken sailors."

+1 Boo-yaa!  nothing can hold back the american consumer


Boilermaker's picture

I mean ONLY the sailors.  They are the only ones still shagging a weekly paycheck. 

Id fight Gandhi's picture

Just like all that mortgage money saved before they kick you to the streets. Buy those uggs and iPads.

Francis Dollarhyde's picture

My wife thinks I'm spending like a drunken sailor.

But I prefer to think of it as transmuting bits of green paper into gold, silver, lead, brass, copper, and steel.