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30 Weeks Of Consecutive Equity Fund Outflows

Tyler Durden's picture




 

No matter the amount of propaganda, the amount of manipulation, and Fed intervention, retail refuses to come back to the market. America's love affair with stocks is over, has bypassed the marriage stage and gone straight to the bitter divorce. Per ICI, the week ended November 24 saw $2.6 billion in outflows from domestic equity funds, and a total of over $91 billion year to date.

 

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Wed, 12/01/2010 - 18:26 | 769914 Mongo
Mongo's picture

Exit in orderly fashion... until panic

Wed, 12/01/2010 - 20:09 | 770235 midtowng
midtowng's picture

You might be led to believe that the sheeple think the market is rigged or something.

Wed, 12/01/2010 - 18:26 | 769915 Ragnarok
Ragnarok's picture

Excellent, now do you have the same for bond mutual funds?  I heard they had an outflow as well.  Where is the money going?  Consumed? PMs? .....

Wed, 12/01/2010 - 18:36 | 769961 lizzy36
lizzy36's picture

Black friday stampede shopping.

What.......... you mean buying depreciating crap isn't a good use of proceeds.

Wed, 12/01/2010 - 18:44 | 769993 Id fight Gandhi
Id fight Gandhi's picture

Which will be worth more in a year, the black Friday shit you bought from selling out your funds or buying the market here.

Thank God we have ZH to tell us the news. MSM is so full shit and lies its hard to stay sane and make rational choices.

Wed, 12/01/2010 - 18:45 | 770000 erik
erik's picture

ETFs are still growing, but that doesn't come close to counter-acting the mutual fund withdrawals.

Wed, 12/01/2010 - 18:27 | 769920 wreynol4
wreynol4's picture

when is this damn thing gonna crash, im so sick and tired of waiting

Wed, 12/01/2010 - 18:29 | 769927 Mongo
Mongo's picture

oh but wait... in a couple of months you will be saying OMFG

Wed, 12/01/2010 - 18:30 | 769932 Ragnarok
Ragnarok's picture

Could have to wait as long as 2013.  Make plans, PMs are on sale.

Thu, 12/02/2010 - 03:27 | 771169 StychoKiller
StychoKiller's picture

And amazingly enough, still being delivered!

Wed, 12/01/2010 - 18:55 | 770033 pat53
pat53's picture

Ain't gonna happen dude! Like I've said, ad nauseum, no way TPTB are gonna let this fall. Trying to fight the Fed and CB's is a losing proposition. A year from now the SPX could be at new all-time highs.

 

Bears don't seem to understand how the game is played. hard to believe after 18 months of getting absolutely creamed. I wonder how many were carried out feet first today. I love how Da Boyz bait the shorts in by taking the market down for a few days in a row, making them think its gonna tank. And then they jam it up overnite and they're trapped like rats in the morning. Works every time, and yet they keep coming back for more  LOL

Wed, 12/01/2010 - 20:30 | 770294 AUD
AUD's picture

Bears don't understand the money market at all. They don't even understand what money is. If they did they would know who is the market maker, in a market denominated in the debt of the market maker!

Wed, 12/01/2010 - 20:49 | 770340 geminiRX
geminiRX's picture

I'm a bear, and I have done stellar on PM's for the past decade. *And* my money doesn't have counterparty risk - does yours?

Wed, 12/01/2010 - 23:30 | 770725 AUD
AUD's picture

Hey, I've done pretty well in PM's too.

And I could well be the biggest bear of all, just not in the 'counterparty risk' you're thinking of.

Wed, 12/01/2010 - 20:36 | 770305 Dollar Damocles
Dollar Damocles's picture

Don't know what makes you think that TPTB have the ability to keep this thing from falling.  You can't fight fundamentals.  Sure you can hyperinflate the currency to push up nominal stock values, but nothing will stop the markets from having their way in the end.

TPTB are bankrupt.  The USG is the most bankrupt nation in the history of the world.  Their intervention in the markets will fail when they fail, and this is inevitable.

Wed, 12/01/2010 - 20:45 | 770327 Rainman
Rainman's picture

Squid is bullshit....bullish....on the BANKS. 

Wed, 12/01/2010 - 22:00 | 770464 stewie
stewie's picture

Two words:  Real, Nominal.

Wed, 12/01/2010 - 22:42 | 770566 chinaguy
chinaguy's picture

I also like: "revert to mean"

Wed, 12/01/2010 - 18:27 | 769922 wretch
wretch's picture

When I'm frustrated over the lack of action I see in this country, I only need two words to remind me of the real progress made every week: equity outflows.

Wed, 12/01/2010 - 19:05 | 770070 RafterManFMJ
RafterManFMJ's picture

No Country for Old Men

Wed, 12/01/2010 - 18:28 | 769924 Bartanist
Bartanist's picture

I guess I do not find it particularly odd that supply and demand dynamics are unrelated to price. All of the markets are after all Goldman's private crooked casinos where they harvest money from suckers, idiots, widows and orphans.

Wed, 12/01/2010 - 18:31 | 769936 Duuude
Duuude's picture

FROM THE FED'S LARGESSE CAME ALL OF THE BONUSES

Wed, 12/01/2010 - 18:30 | 769934 Clint Liquor
Clint Liquor's picture

I think they just got tired of being Stocksuckers.

Wed, 12/01/2010 - 18:31 | 769935 Beanie Baby Bubble
Beanie Baby Bubble's picture

I don't want to be all skeptical and everything here -- but does anyone think that maybe mutual funds are going the way of the dodo and people are just using ETFs more?

Just saying.

 

Gold bitchez,

BBB

Wed, 12/01/2010 - 18:32 | 769941 vote_libertaria...
vote_libertarian_party's picture

Equities crash?   They may be able to fit it in after WS bonuses are handed out and before American Idol starts.

Wed, 12/01/2010 - 18:40 | 769947 hambone
hambone's picture

Maybe equity outflows are good for economy (people using savings it to spend while in UE or in retirement and folks not funding their 401ks?) and good for the market as PD's happily hoover up the shares w/ free money from Fed via POMO's? 

Seems all wrong but seems a net present positive?  Would actually slow economy if folks were "investing"?  Better for economy if Fed just creates new money to replace the outflows?

Just trying to see it for what it is now...not making any value judgements about the fed taking future tax revenues, passing it to banks, so they can buy inflated assets that will only require another bailout if / when gravity reasserts itself.

Wed, 12/01/2010 - 22:07 | 770474 stewie
stewie's picture

 

From:  http://www.youtube.com/watch?v=d0nERTFo-Sk

...


So forget about saving, get it straight out of your head
Like I said, in the long run—we’re all dead
Savings is destruction, that’s the paradox of thrift
Don’t keep money in your pocket, or that growth will never lift…

because…

Business is driven by the animal spirits
The bull and the bear, and there’s reason to fear its
Effects on capital investment, income and growth
That’s why the state should fill the gap with stimulus both


 

Wed, 12/01/2010 - 18:35 | 769951 LeBalance
LeBalance's picture

(The arrival of the stimulus team):

Hello?
Is there anybody in there?
Just nod if you can hear me.
Is there anyone at home?
Come on, now,
I hear you're feeling down.
Well I can ease your pain
Get you on your feet again.
Relax.
I'll need some information first.
Just the basic facts
Can you show me where it hurts?

(The application of the stimulus):

There is no pain you are receding
A distant ship, smoke on the horizon.
You are only coming through in waves.
Your lips move but I can't hear what you're saying.
When I was a child I had a fever
My hands felt just like two balloons.
Now I've got that feeling once again
I can't explain you would not understand
This is not how I am.
I have become comfortably numb.

(solo)

How can we get back to reality?

Smash the Wall!

It is not Outside.

Wed, 12/01/2010 - 18:34 | 769955 doomandbloom
doomandbloom's picture

oooh...can we make it to 50 weeks? now that would be something innit?

Wed, 12/01/2010 - 18:36 | 769964 sabra1
sabra1's picture

Bob Chapman:

Airport officials at Denver International airport were on high alert yesterday when a full body scanner operator was caught masturbating in his booth as a team of High School netball players went through the scanner.

"The young ladies were going through the scanner one by one, and every time one went through, this guys face was getting redder and redder. His hand was moving and then he started sweating. He was then seen doing his 'O' face. That's when the security dragged him out of his booth and cuffed him. He had his pants round his ankles and everybody was really disgusted," Jeb Rather, a passenger on a flight to New York told CBS news.

Wed, 12/01/2010 - 18:42 | 769982 traderjoe
traderjoe's picture

http://sayitaintsoalready.com/2010/11/22/body-scanner-caught-masturbatin...

According to this article, Snopes.com has said this did not happen. 

Wed, 12/01/2010 - 18:46 | 770004 Ragnarok
Ragnarok's picture

Further investigation is warranted.

Wed, 12/01/2010 - 23:07 | 770655 ShankyS
ShankyS's picture

The TSA tacke "full facials" seriously.Must have been a former SEC employee.

Wed, 12/01/2010 - 18:44 | 769994 tmosley
tmosley's picture

Ok, can we charge the TSA with facilitating the production of child pornography now?

Thu, 12/02/2010 - 03:31 | 771171 StychoKiller
StychoKiller's picture

Sad to say, but I find this story highly believable.

Wed, 12/01/2010 - 18:36 | 769965 treemagnet
treemagnet's picture

Outflows vs. POMO, not a fair fight.

Wed, 12/01/2010 - 18:41 | 769970 Xibalba
Xibalba's picture

MSM will spin this as bullish... i.e. "Just imagine what will happen to stocks when the cash comes back in?!?" 

Wed, 12/01/2010 - 18:46 | 769988 John McCloy
John McCloy's picture

Does anyone at the Fed or SEC want to concern themselves with the kind of leverage needed to offset these unparalled outflows or are we pretty resigned to the fact that the reckless actions that caused 2008 now magnified in order to pretend we are mildly recovering?

  This is sickening. So now we have a stock market that can never allow any actual selling on volume by the PD's, interest rate hike or Federal non-intervention in order for financial markets to keep a heartbeat? How do you think this will all end?

 I defer to Harry..You to tell me. Since we are now a country reliant upon our reserve currency to print gaps and do not produce anything anyone purchases how can this not lead to more of the same until we all end up in a "Walking Dead" mode. 

Wed, 12/01/2010 - 18:45 | 769995 functionform
functionform's picture

removed.

Wed, 12/01/2010 - 18:45 | 769998 pat53
pat53's picture

What a bunch of idiots ! Fortunately for them, they still have lots of time to get in on the bull move in stocks. SPX 1250 easily by year end, maybe ever 1300.

Wed, 12/01/2010 - 18:47 | 770007 Bill Lumbergh
Bill Lumbergh's picture

Why not 2,000...when everything is fantasy land why should we limit ourselves to such low numbers.

Wed, 12/01/2010 - 18:46 | 770001 ebersman
ebersman's picture

is it possible that the outflows are merely people moving into stocks or commodities or etfs to get out of mutual funds. I have done this myself.

Wed, 12/01/2010 - 18:47 | 770009 Common_Cents22
Common_Cents22's picture

the market doesn't need real money anymore.

I'm sure people are still in denial/shock while pulling out their IRA/401K for lving expenses.  Nothin happens until they run their IRA/401k completely out and have no checks in the checkbook, and have tapped credit cards(check), and have pulled out all equity out of their home(check).

 

The market mirage is only good for maintaining order and some sort of wealth confidence.   However, the market will be sacrificed at any time when the govt needs to raise more money to feed their habit and fill their troughs.  The only thing holding that off is much of the rest of the world will be in trouble quicker, triggering a flight to quality(its all relative). 

Wed, 12/01/2010 - 18:52 | 770022 hambone
hambone's picture

domestic equity funds - OUTFLOW...must be a bigger inflow making up for this from "somewhere" as net-net the market is going up w/ the same or more shares outstanding?

So, it's just stoooopid America that's too broke to take part in this momentous rally...too busy off trying to pay bills and eat food n stuff.

Wed, 12/01/2010 - 19:56 | 770099 Franknewsom
Franknewsom's picture

.

Wed, 12/01/2010 - 19:16 | 770109 toros
toros's picture
AAII: SMALL INVESTORS POURING INTO STOCKS

http://pragcap.com/aaii-small-investors-pouring-stocks

Can they both be right?

Wed, 12/01/2010 - 19:26 | 770136 BORT
BORT's picture

aaii is percent allocation, not dollars

Wed, 12/01/2010 - 19:39 | 770174 Cdad
Cdad's picture

Average Joe kicking ass and selling into strength...again!

Smart Money now = BAGHOLDER

Wed, 12/01/2010 - 19:47 | 770201 RobotTrader
RobotTrader's picture

Who knows??

Bond fund holders are now getting killed.

Only a matter of time before they get frustrated seeing bonds go down and stocks go up each week.

Then the fund flows will probably reverse.

Wed, 12/01/2010 - 20:04 | 770221 Mercury
Mercury's picture

In even bigger news we also had net bond fund outflows for the first time in 99 weeks:

http://www.marketwatch.com/story/the-shifting-tides-of-bond-fund-flows-2...

Wed, 12/01/2010 - 20:19 | 770266 espirit
espirit's picture

The rest of my 401k coming out after Jan 1 so that Uncle Sugar only gets a little, so try and keep PM's reasonable until I'm able to add more.

Willing tho' to buy on dips. 

Wed, 12/01/2010 - 20:32 | 770296 Problem Is
Problem Is's picture

"...November 24 saw $2.6 billion in outflows from domestic equity funds, and a total of over $91 billion year to date."

Tyler: I think Bennie has that covered and then some...

Wed, 12/01/2010 - 20:43 | 770321 Threeggg
Threeggg's picture

Is this 250 point ramp up today frontrunning some bad news to come ?

We will see ?????????????

TD are you messing with the Captchas to make me feel like a 1st grader ?

Wed, 12/01/2010 - 21:20 | 770403 prophet
prophet's picture

Pop quiz, hot shot:

SPX market cap ~$10.2T

$102B outflow will equal 1% of assets

Just a small steady stream of rebalancing activity.

US equity muts (all) ~$5T and half of that is owned by the wealthiest 1%.

 

Wed, 12/01/2010 - 21:49 | 770450 Future Jim
Future Jim's picture

Is it possible the sellers mostly just need to sell because they have to cover other losses, expenses, taxes, etc?

Wed, 12/01/2010 - 22:09 | 770481 cdskiller
cdskiller's picture

I would not put money in the stock market if you put a gun to my head.

Wed, 12/01/2010 - 22:39 | 770560 Hooter Shaker
Hooter Shaker's picture

A gun will be put to your head not to force you into the market but to force you to hand over your guns.  You know....Just to make sure everyone is "safe".

Thu, 12/02/2010 - 00:20 | 770861 TheProphet
TheProphet's picture

Hoax. Right up there with the choking Doberman.

Thu, 12/02/2010 - 01:36 | 771008 gwar5
gwar5's picture

Those are some scary charts if you think about it.

All I can say is, "Just Buy the Fucking Dip."

Thu, 12/02/2010 - 09:09 | 771346 JNM
JNM's picture

If the bond market is any signal...this trend will end soon, and voltility in equities will really start to pick up.  Up and down.

99th week of consecutive Bond INFLOWS ended last week.

http://www.marketwatch.com/story/the-shifting-tides-of-bond-fund-flows-2010-11-29?link=kiosk

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