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Equity Fund Flows Extend Rout: $4.8 Billion In Outflows In Past Week
Retail investors have pretty much given up on the market according to the latest ICI fund flow data. In the week Ended May 19, domestic equity mutual funds saw a third consecutive outflow, this time for $4.8 billion, as mutual fund cash levels, already depleted, are starting to hit critical level and forcing liquidations (ignore today's EOM rebalancing - just a close out of short positions ahead of a traderless Friday). At this point there have been almost $15 billion in mutual fund outflows from domestic stocks year to date, a staggering number considering the market is unchanged for the year, and once again begging the question how long investors will allow primary dealer Fed proxies to continue to speculate with each other and permit HFT programs to derive liquidity rebates as they push the market higher on no volume and no good news. Also notable is that in the past week taxable bond funds also saw an outflow, with the only inflows seen in hybrid and municipal funds. We will provide the Lipper fund flow data later today.
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Not to worry! The Future is just around the corner ...
LMAO!
Nice, I like it. It implies that the future lies off of the path we are currently on.
Notice the data does not include last thurday and friday inflow of 10 bn in sp from ben's and timmay's 401k
No worries, 'free market' sharply higher, PPT in control, all is well.
But..."all the money on the sidelines"...
Makes sense for the market to rally when money is flowing OUT!
What a totally rigged fucking farce this is........
I agree, for weeks Ive just been a rubber necker, watching this disaster from afar. I decided money is much better put to use elsewhere than the Ponzi rigged fraud casino. Who needs the headache? And a momentary glance away from your monitor can mean a wipeout of your funds. Nah, let Timmay and the few prop desks have their fun jerking each other off all day, Im buying ammo.
Ammo is comming down, buy buy buy!
interesting units of Sprotts PHYS (American funds) and PHY.U (Canadian Funds) at the same price in their respective currency, which suggests that the US is at a premium but that makes no sense so I am clearly missing something.
realtime quote from just a few moments ago
http://i49.tinypic.com/71o476.jpg
(the currency stated in the above chart is CDN$ for PHY.U and $ for PHYS)
How much of the total market cap is held by mutual funds?
I agree with Tylers assesment of today, EOM lipstick on a pig, short covering ahead of long weekend. Retail investor obviously saying 'Ive had enough, goodbye 'free market'...got to pay the bills somehow. But the forced fund liquidations are coming and who is going to buy, Timmay and Big Dumb Ben? We'll see.
And we'll probably see a heck of a lot of it tomorrow as well as shorts cover furiously into the long weekend and managers chase this thing up above key technicals as well.
No, we'll probably see all the longs sell and everyone go flat for the weekend. No one holds anything longer than 5 milliseconds now so really any normal behaviors are out the window.
Bob pissani: I grew up in the real estate business and my dad told me to aleways be disapssionate about your investments {snip}...Trish, look look no selloff into the close..What a pathetic shill - even eddie murphy would bang such a pathetic whore
""""Makes sense for the market to rally when money is flowing OUT!""""
Sure, they can't have an orchestrated run-up and have The Public in. We were already at all time lows, as far as Individual Investors in the Market, and the March 6 Fiasco made sure to assure an even lower level of The Public in---here's some pastes:
Published September 16th, 2009
According to the AAII, US retail investors were shell-shocked by the most recent bear market into reducing their equity exposure to the lowest since they started keeping stats on portfolio allocation
May 26, 2010 ... The return of stock market volatility after some relatively calm months may be ... this year and has gained 59 percent since the market low in March 2009. ... down from more than twice that level for nearly the entirety of the past year! ... and the mass exodus of the retail investor does seem like herd-mentality thinking (even if it is justified).
Investors pulled an estimated $14 billion from U.S. stock and bond mutual funds in the week ended May 12
Folks need tha redemptions to survive, pay their bills.
Gotta be a lot of that happening. I know a few people cashing in the 401ks to pay bills.
Anybody like the L shaped graph today? Schwing! MANIPULATION ACCELERATION...builds and builds.... Until the gangsters computers just lob the tennis ball back and forth all day because no one else is playing.
This is going to set up the all time greatest run to the exits in mankinds history. The lesson is panic first, panic best, panic faster than the other guy. We are day trading the whole economy on funny money infusions. One of these times the stimulus gun won't be on tap fast enough, the herd having learned to be nimble quickly bee lines for the cliff to be the first off the edge, and it'll make the flash crash look quaint.
Big Finish!!!
http://www.youtube.com/watch?v=c8UtojJT8ts
Definitely tune into Fast Money -- today you're bullish, you bought yesterdays dip for sure (even though they made sure to tell you to be defensive) now for sure bullish, until tomorrow which could for sure be bearish.
That show is worthless.
Though I enjoy the guy with the pretty hair who takes it as a personal affront whenever anyone disagrees with his bullish scenario.
I find it to be serious entertainment. Plus I love how they continuously say now's a great time to jump in -- even if that is 5 minutes after they told you to jump out.
fucking bot topkill.........here comes the 200 dma's.
Nonetheless, the market is oversold, and perfectly set up for a vigorous bounce.
Hence, I loaded up on SPY.
I think the world coming to an end is factored into the markets for now.
Wow, I am amazed that the EOS closed above 1100. Does this mean an up open with a sharp sell off at the end of the day, tomorrow?
This makes perfect sense. Not everyone can get rich from the stock market. In fact, nearly all of the population will not get rich. Those who are able to hang on, and not sell at this point, will reap the greatest amount of benefit. Remember, for all of those outflows, someone is buying. Stock is moving from weak hands (ie: retail, who are moving into the latest bubble du jour, US treasury bonds), to strong hands.
I'm sure all these people who are selling equities off like mad right now will regret it big-time when we see Dow = 36,000, but only a small number of people benefit.
I assume you're being ironic? This is the argument I always hear from fund wholesalers: retail investors are the stupid money, so use them as a contrarian indicator.
But I don't think the smart money has been so smart of late. Throughout 2006-2007 I kept hearing how the hedge funds and Ivy league pensions were the smart $... until they tanked in 2008. And, all the prop desks at broker/dealers aren't the smart money either, as evidenced by the CDS disaster.
Yeah, I guess Bear and Lehman weren't the smart money, because they were long a lot of shit right at the top of the market.
Same could be said for Merrill, MS, and GS, for that matter, except they were all bailed out by the taxpayer in one sense or another.
Unfortunately for most individual investors, their losses won't be covered by the government.
All those others are still long a lot of shit as we speak...they just don't have to M2M...unlike you and me.
The fact that equity holders are forced to M2M means that prices don't get terribly out of whack relative to fundamentals.
Contrast this with bonds where, if there was a true, unfettered, and un-government-subsidized market, there would be no bid.
Whether you like, or hate the stock market, it is not being manipulated upwards or downwards, or at least not in a blatent manner, by the government.
duplicate post
I just love it when the computers play. W.O.P.R. has been busy, busy, busy...
It is hard to get the mortgage renegotiated when the borrower has mutual fund assets on the balance sheet. Cash out and hold the money for a while.
Of course. A lot of morons thinking Housing Bubble 2.0 is right around the corner too, are selling equities.
do mutual funds include ETFs?
Maybe retail investors are waking up to the fact that a closet index fund, that holds hundreds of stocks, churns the portfolio, and has sub index performance is a rip off, and to really add insult to injury some may charge you management fees of up to 2%.
Additionally brokerages seem to be having a commission war right now. Fidelity lowered commissions to 7.95 a trade. Vanguard has lowered it to 7 or 2 depending upon how much you have invested with them.
Additionally with ETFs you can use stop loss, limit orders etc to manage the portfolio. You can even use options to hedge risk.
Seems to me the mutual fund is a do-do bird.Except in your 401k where you are forced to choose from several varieties of dog-food.
Just posted a EURO monthly chart ...
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1