$5.1 Billion In Outflows For Domestic Equity LT Mutual Funds Over Past Month
As CNBC guests will be so quick to admit, the money on the sidelines is indeed not sitting still: it is fleeing! Even as the market has gone up by 4% over the past month, flows in domestic long-term equity mutual funds have become increasingly more negative. The total amount withdrawn is over $5 billion, and last week alone saw a -$3.2 billion outflow, according to Investment Company Institute.
Not only does this refute claims of any presumed sidelines money stoking the rally, but it emphasizes the question mark over who it is that, with Swiss watch precision, keeps gunning the market at 3:30 pm sharp every day, while the volume keeps declining progressively (except of course for those days in which the market tanks such as last Tuesday - Chart 2).