Relentless Equity Fund Outflows: ICI Reports Another $1.2 Billion Redeemed, 8th Straight Week Of Outflows

Tyler Durden's picture

Crunchtime for mutual funds has arrived. On one hand they are getting slammed with the S&P now almost -8% YTD causing a collapse in the funds' own equity values. On the other hand, investors have now withdrawn $30 billion in cash, forcing a feedback loop where selling begets selling, and even more redemptions. Ah, the beauty of a Keynesian system falling apart. And let's not forget that fund cash levels are at all near record lows to begin with. If the market slide can not be contained, and if consumers who already have zero faith in the market retrench even more, it could be the beginning of the end for the fund industry. More relevantly, ICI has just reported $1,248 million in outflows from domestic equity mutual funds: this is the eighth sequential week of outflows since the Flash Crash, and a period during which $32 billion has been redeemed.

 

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Double down's picture

Jokes aside, what is left?

malusDiaz's picture

no or now? 3rd line, 3rd sentence. 

pan-the-ist's picture

For the middle class, it isn't bad enough that the tax money goes to TBTF, but it seems like our investment funds are basically a private tax to keep the corporations going.

jkruffin's picture

Anyone see where S&P news telling Moody's : We may downgrade you!  LOL  Epic!!

They are all turning on each other like rabid dogs in a cage match.

http://finance.yahoo.com/news/SP-Warns-Rival-Moodys-We-cnbc-4178316918.h...

mikla's picture

Everything is priced too high.  Stocks, bonds, everything ...  not worth the current price.

They buyers are gone because they are unemployed, or because they are smarter than the central planners trying to hold together a side show.

Bam_Man's picture

But...but...it just means there's that much more in "sideline cash" ready to come in.

Thus, mutual fund outflows are bullish because they add to "sideline cash".

There. I feel much better now.

Young's picture

Yeah, that's what the subprime guys said aswell...

Problem Is's picture

"Thus, mutual fund outflows are bullish because they add to "sideline cash"..."

Wow...
Go to Home Depot... buy a sledge hammer... the biggest one they have... go home and destroy your teevee...

Because that post sounded just like Steve Lies-man  pontificating on CNBC while starring at Caruso-Cabrera's rack...

101 years and counting's picture

Great post, and that would be true.....

If that money wasn't already spent on new iPads and iPhones.

 

buzlightening's picture

ROTFL bam guy!!  Simply rolling!!  rat bastards and treason season soon!! 

homersimpson's picture

"May the shorts be with you..."

Famous quote by a rich Jedi..

 

tmosley's picture

I thought it was the Schwartz.

homersimpson's picture

The ones you refer to weren't rich Jedis.. just clueless.

Mako's picture

You people that believe in decoupling are going to be getting another smack of reality in your face in time.

http://stockcharts.com/def/servlet/SC.pnf?c=$SSEC,P&listNum=

The chinese are not coming to save you, they are going to have to save themselves by going back to the villages. 

It's almost like the Chinese are leading, right down to the pit.

 

Rusty_Shackleford's picture

"Join the insanity
Or die as you fall
Into the pit!
The mass production
And the killing of all
Into the pit!
The future screams for help
Are fading away
Into the pit!
The world tomorrow
Will it die for today?
Into the pit!"

 

http://www.youtube.com/watch?v=ePEFBxDGRw8 (for all the Bay Area thrash fans out there)

anony's picture

Tic-tac-toe for the Mensa crowd?

Cursive's picture

"it could be the beginning of the end for the fund industry."

It seems like at least 10% of the adult men that I know work as financial advisors in the fund industry.  Lots of Merrill Lynch, Lincoln Financial, Wachovia, Regions, Morgan Keegan, A.G. Edwards advisors.  I often tell my wife that most these people will be looking for a job soon.

pitz's picture

Why?  Aren't those outfits making decent money peddling muni bonds and bond funds to their clients?  The "fund" industry isn't 'just' stocks ya know...

Agent P's picture

Don't forget about those sweet precious annuities.  Trust me, you can't lose. ;-)

Disclaimer: Please don't read the 700 page prospectus written in Farsi, or you might actually figure out you're going to take an ass raping on the 4%+ in hidden fees, so that I, your trusted financial advisor (who coincidentally used to be a car salesman) can keep making my boat payments.

Cursive's picture

Munis?  I wouldn't buy munis with YOUR money.  Let me elaborate.  We are in a deflationary death spiral and leverage is being withdrawn from the system.  Real returns are heading lower regardless of the type of security.  Cash and PMs are king.  AUM is declining, ergo, the financial advisory industry will get smaller.  Much smaller.

VegasBob's picture

Wells Fargo bought Wachovia which had previously bought A G Edwards.  They're all Wells Fargo Securities these days, and the brokers are now falling all over themselves trying to drum up business in an effort to avoid getting laid off.

It's getting really ugly out there.  Yeah, manufacturing employment ticked up a bit in order to rebuild inventories, but the buildup is done, and manufacturing is only a little more than 10% of the economy.

We are in for an intractable depression that will last for years, regardless of which political party holds power.

anony's picture

What we need more than ever is millions upon millions of manly jobs, jobs that match humans that possess certain chromosomes, with jobs that use those chromosomes.

Suiting and tieing up every day to go to an office is pansy pussy work. Men need to get out of their suits, throw on some manly clothes and do manly work. That'll get this quadrant of the globe moving again. Nothing could be better for this economy than for the financial sector to shrink by 3/4, mostly staffed by femininely wimmin.

Agent P's picture

"I'm a lumberjack and I'm okay.  I sleep all night and I work all day..."

http://www.youtube.com/watch?v=5zey8567bcg 

Oh wait...never mind.

mtomato2's picture

I'm suprised you haven't been junked.  Mostly because your comment makes too much sense.

Cursive's picture

@anony

Yes, that is the remedy.

Oh regional Indian's picture

Too late for that anony.

Look around you and you will notice that men are hardly men anymore. Neither are women, well, women.

Everyone (mostly, broad-brush) is left a pale shadow of their core beingness, man/woman or masculine/feminine.

Metrosexuality, gay pride... all well as they are, but propagandized as they have been, they take on a different hue.

Yup, Mr. Manicure or waxed-back cannot swing a hoe (!) and Ms. body conscious is too busy getting all those hair removed or losing that last inch of fat to know much about much.

It really is as if the sexes too are melting back into the mix, slowly losing their identity.

Probably just as planned or just as well.

 

ORI

http://aadivaahan.wordpress.com

Gimp's picture

Is this how Mr.Ponzi felt in Boston when his enterprise started to unravel?

And as far as "Financial Advisors" I will take a ZH'er over one anyday of the week.

hutrader's picture

amen to that!! I know advisors...all they say is GLD. ha!!

pitz's picture

Only a small chunk of the population can get 'rich' from the stock market, hence, the stock market will not rise meteorically until only a small number of people are invested in it.

You want to buy when there's blood in the streets (ie: now).  You want to sell when the newspaper headlines are boasting of taxicab drivers getting rich buying stocks with no earnings and dysfunctional business models.

Dr. No's picture

There isnt blood in the streets yet.... I have not heard one word aboout the stockmarket at the water cooler, wherease in 2008, everybody was talking about it... (i dont work for a financial company). 

anony's picture

Do they really still have water coolers in offices?

hutrader's picture

yup exactly. When detroit is renamed as "the shot heard round the world" then you might start looking at buying...until then buckle up it's gonna be a doozie!!

Muir's picture

Thank you TD

I appreciated the post.

juangrande's picture

  "buy when there is blood in the streets"    there is no blood to bleed, maybe embalmer's fluid.

buzlightening's picture

Zerohedge has some of the greatest commentors/tormentors of rat bastards around!! Side splitting juan!!

ReallySparky's picture

Other's have commented on previous threads that the PPT is letting this happen.  Everyone is questioning their motives, plot, plans.  Perhaps common sense should prevail, with the reported billions in out flow at what point can the PPT continue to prop up the market whilst foreigners, fat cats cash out?  Perhaps the PPT has finally realized that they can not afford to own the entire market.

jkruffin's picture

But, but, but....Benny claimed on national television that he was not intervening in the stock market at all, never.  So how can they be involved?  LOL

buzlightening's picture

Nother great rat bastard tormentor!!  Thx for another side splitter jk!!

VegasBob's picture

One of the few certainties in the world today is that one should never believe a single word that comes out of General Bernokio's mouth...

Noah Vail's picture

Just like 50% of the women I know were real estate agents. Were.

There is nothing left to do in this country anymore.

Rusty_Shackleford's picture

"We'll soon find out whether an organism the size of the United States can run an economy based on one family selling the contents of its garage to the family next door."

Jim Kunstler

anony's picture

For as perspica.....percperka....perci....as astute as Kunstler was in making that observation, you would think he already knows the answer to circular garage sales already stone cold.

NumberNone's picture

Honest question...are we finally starting to see the inevitable impact of the Baby Boomer generation pulling funds out of the market to protect their retirement assets? 

You gotta think people remember the drop to 6000 and remember not selling the market because a broker told them the market will bounce back.  In recent weeks they've seen the drop, heard the bad news, and now they don't want to be the last one out the door. 

In 2006 the GAO did a study out of the concern that the BB generation could collapse the market if they pulled their money out. BB's controlled at that time $7.6 Trillion in assets.  They determined that the BB's would slowly pull their money out over a 19 year period which would prevent a collapse...but of course 2006 was a lifetime ago before the housing bust and market collapse. 

Dr. No's picture

+ 1  Waaaay back right out of college, I posed that BB question to a financial advisor.... he gave me a goofy look like it couldnt happen.  Poor guy.

pitz's picture

But pulling out of 'the market' is impossible.  There's a market in all asset classes and fiat claims.  Cash is just another asset class and those who pull out are just market timers.  The trade towards cash and bonds is awfully crowded these days.  The sheep move together at their own peril.

Dr. No's picture

But some markets are more liquid than others, with cash being the most liquid.  I can buy bread with cash.

pitz's picture

I can buy bread with most stocks, with gold, etc.  What's your point?  FRN's are just another form of currency, like stocks, like bonds, etc.