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Retail Investors Don't Care If Stocks Are Up Or Down, They Just Want Out - Record 15th Weekly Outflow From Domestic Stock Funds
Retail threw in the towel weeks ago, which is why at this point confirmation that nobody is trading is like watching reruns of Weekend at Bernies (or GETCO's). ICI reports that the week ended August 11 saw a record 15th weekly outflow from domestic stock mutual funds, this time of $2.1 billion. YTD outflows are now just under $48 billion. Hedge funds are not the only ones who missed the miraculous and completely senseless July stock ramp: retail pulled out $13.1 billion in the same time, and has followed up by redeeming another $4.1 billion in August so far: nothing matters anymore - stocks can go up, they can go down: it is all the same to the one segment of the stock market responsible for the biggest portion of market capitalization. There is no improvement in the trend - retail has no faith in stock valuations, in the SEC, in the possibility that another flash crash won't happen tomorrow. Furthermore, retail is getting older and the retiring baby boomers would rather drink cyanide than put their money in stocks. We wish all the best to the computers and the Primary Dealers - they are now all alone. We dread to even think what cash levels are like at mutual funds.
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"retail has no faith in stock valuations, in the SEC, in the possibility that another flash crash won't happen tomorrow."
Exactly.
All the perps are losing credibility the old fashioned way. They EARNED it.
have been out since October 2008.
401k stuck in money markets yielding 0.2 % !!
Jane, get me off this crazy thing. I have been out of the rigged casino since Aug. 2008.
No prosecutions and no changes and no investigations. When govt. spent more to prosecute blago than they spent on investigations into market meltdown even the sheep could figure out why.
Confidence is shattered in almost all institutions. Ben needs to hire Tony Robbins to do daily national confidence building exercises.
Wow you are brave. I split money market account july of 2008. When fannie and freddie came bailout crying and the buck broke then money market goes bad.
All the perps are losing credibility the old fashioned way. They EARNED it.
How true - and don't let them CONvince you otherwise.
Couldn't have said it better myself.
But Leo and Tripps wants us to buy the dips...! Is that confidence (probably stupidity) or what? Cmon guys - follow the permabulls!
I'm sure Leo is ready to point out how Chinese solars were oversold a couple days ago..
Sure gonna be interesting to see if S&P can hold above 1070 on the close. If not, there's lots more downside to come.
I bet a lot of it is the long-term unemployed liquidating their 401k's...because they have to.
Agree, I wonder how much of the pullback is due to market mistrust vs. "I gotta pay the bills"
Maybe people have other financial constraints now (underwater mortgage & no job come to mind) and having $ parked in an trading account or fund doesn't make sense anymore.
Hasn't anyone ever wondered why they call it a "flash crash" when everything peformed flawlessly as it was designed to, right down to the last piece of software and hardware installed so they big boys could frontrun the system......
They don't trust the markets anymore, pure and simple. Everyone is figuring out that our markets are just a hair breadths away from falling into the abyss and they know it.
Well, looks like the megabanks wanted to completely dominate US Equities with their algos.
Now, as retail is exiting the market, the megabanks are realizing their dreams.
Be careful what you wish for, squids. Who are you going to sell your equities to now, hmmmm?
Quick! Get some quant to develop an algo to get you out of the corner you painted yourselves into.
Flash crash gave peek behind the curtain. There is no liquidity once the ball is rollin'.
The flash crash was very beneficial. Did you see the price of gold as the market was tanking? I also noted that my gold mining stocks soared DURING the crash.
Well, there still is the 401k option. All in the interest of capitalism and democracy.
There are consequences for market manipulation. This is one of them.
keep an eye on cp too
http://www.federalreserve.gov/releases/cp/outstandings.htm
http://www.youtube.com/watch?v=jxNEiZhpinY
The Animals - We Gotta Get Out Of This Place
http://en.wikipedia.org/wiki/We_Gotta_Get_out_of_This_Place
- Believe me baby - I know it's true!
Check out the holders of IYR ... the mega banks own you.
http://www.nasdaq.com/asp/holdings.asp?symbol=IYR&symbol=AOB&selected=IYR
This is our market today.
Not really, they mostly own the POS malls and offices.
Well then, I guess all that is left is all the kings soldiers, All the kings men ( Daytraders)
If you're retail, why pay mutual fund charges, when there are lower ETF charges to pay instead ? See yesterday's ZH comment on July ETF flows. Retail is not gone from equities, but has partially switched into bonds, EMs and is increasingly using a different vehicle for direct investment in the SPX. Which will hopefully lead to a cull of the number of idiots hugging the indices, sorry, 'managing alpha'
Dismal,
You would have a point except that the main flow has been into FI and Foreign/Alt ETFs not US domestic, which look to be up but to a much lesser degree.
Also, the buyers of the ETFs (initially a cheap retail product) has increasingly become Hedge Funds, Insitutions, Pension Funds and Advisors/Money Managers who, while having retail investors, are not the same thing.
The retail investors that I talk with, especially the more sophisticated ones, think that the stock market has become rigged and that they have little chance at getting a fair shake among the manipulation.
This is my point. ETFs are becoming a new normal for direct investment in the stock market, regardless of who the buyer is. Could be retail, could be Paulson, could be whoever. Thats it really. It can only highlight the gross overpricing of mutual fund products for equity investors, no ?
They are also more easy to trade for shorter term purposes. In either direction. Caveat emptor as always. I am just glad that people have an alternative to giving money away to second and third rate hack fund managers, dressing their investment philosophies up in jargon.
ETFs are not all they have cracked up to be. in fact much of the fees are hidden from the investor (as opposed to open end funds). The way an ETF works is that when the NAV increases an arbitrage opportunity is created and the market maker appointed with delivering the shares "realises" this arbitrage profit by selling shares to the ETF. This is really just a hidden fee when you think about it. But as a whole i agree with you that people are choosing ETFs because many mutual funds blatantly rape their holders with fees for no reason at all (except greed on the part of the mutual fund and stupidity on the part of the investor).
The other thing to worry about regarding ETFs is that many of them (especially commodity ETFs) hold no actual assets. Instead they must continually (and predictably) roll over future contracts essentially guaranteeing the investor will always under-perform the asset in question. This also presents other actors in the futures market with an opportunity to "pre-roll" the ETFs, basically bleeding them to death. See this article for more info on this giant scam. http://seekingalpha.com/article/189214-how-contango-can-kill-commodity-e...
Finally, one of the biggest ETF's that is seeing massive inflows is GLD. Now i don't have all day to educate people why this is a terrible investment but i would direct you to this interview by Ben Davies http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/8/12_Ben_D...
Note i am not saying owning physical gold is a bad investment. In a nutshell GLD is just a synthetic CDO because it has no gold holdings, it only has paper pledged by banks who are "lending" gold that is contractually obligated to other holders. Essentially this is a "backdoor" fractional reserve system of suppressing the gold price through the "creation" (via an ETF) of gold that doesn't exist on planet earth.
Now, all of what i have just told you should wake people up to the fact that ETFs (many of them at least) are just the new form of financial engineering to part fools from their money. In fact i think any money manager that puts their retail clients into these ETFs without personally scrutinizing every line of detail in the prospectus is breaking their fiduciary duty. Of course no money manager wants to hear this because most money managers just throw retail investors in cookie cutter portfolios and bleed their clients with "fees" for all the awesome investing advice they are giving them.
sooner or later these HFT banks will start feasting on each other...
Look at all the hedge fund closing announcements this week. It's already happening.
In a way, it is a beautiful thing. This chart is a graphic reflection of the manifest failure by the Cartel to coax retail back into the market. In a garden of lies, truth peeps through the buds...
The major indices could pop at any time; when the bots become Self Aware, they will sell en suite. You could not get me back into the 401(k) cesspool with a dragline and a Cat backhoe.
What an absolute shame the ponzi scheme that is the stock market is coming to an end.
Pull up a chair and grab a drink. Its going to be one hell of a show!
"Look on the bright side: we've got front row seats to the end of the world!"
mmmm... cyanide... mmmm...
It's not "no faith." It's "no income."
Correct. How much of this are Boomers (not to be confused with characters from Left 4 Dead) who are cashing in their 401ks--albeit partially-- in order to retire, or simply live if they got let go from their last job. I think it is the shadow of mass unemployment that's showing up in these numbers.
Nice Left 4 Dead reference. Loved that game. Kind of felt spooky, which was a credit to the GUI (if that is an appropriate use of the term). Enjoyed exploring rooms with the flashlight and seeing some eyes poking back.
The FED better watch out for Chicago Ted.
http://www.gamesprays.com/images/icons/chicago-ted-1725_preview.jpg
Love that game :)
Barry will save us!!!
He tried to.. at the tune of $3.5 trillion.. all for naught. Don't think he'll try again, though.. esp. when he doesn't have to foot the bill.
Thank you, Tyler, for the many pearls of wisdom. I routinely forward my father posts that I think would have impact on him. I finally got the call last night - "I don't care what my advisor is telling me, this is all bullshit." I love you, dad.
Sir, you truly are a loving son.
Family ties FTW!
I have also been trying to wake up a former colleague of mine. This guy has well over $500k in his 401k. Initally he would say that could never happen in America. Now it's,what are supposed to do? I tell him you have to figure that out for yourself. But food,water,protection & gold are probably a good place to start. Hell this guy didn't know the FED was a privately held bank.
Exactly. Start at Costco. Load up on $5k worth of goodies.
And the liquidity providers wonder why volatility has gone up instead of down as they forecast? Oh well, I guess it's always most difficult to see the source of a problem when it's you.
The only reason I continue to hold some equity positions is so that I can write covered calls out of the money. Made a 19% annualized return on my investment (without leverage) during the last 13 months doing just that. I plan to keep doing it until the stock gets called away, then I'm out for good.
Me too!!
And paper gold but to play covered short games with (physical is somewhere I can't play with it).
Sorry all you gold bugs out there, as long as fiat is spendable, I'm doing it!!!
Yeah, that's the ticket. I want to follow the herd out of stocks, because that's the smart trade. Sell KO, buy CT10 give 50bp, or even better, sell JNJ, buy 10s, give 100. I guess the fact that JNJ has raised its dividend every year FOREVER is not reason enough to buy a "risky Stock"(is that a redundant statement?) investment over the safety of Obamabonds.
Sheeple! sell your stocks, buy bonds at 2% the world as we know it is ending!
I (will) miss the honky tonks, Dairy Queens, and Seven-Elevens.
http://www.youtube.com/watch?v=pt-lzUvH_j8
"Don't leave me standing here, I can't get used to this lifestyle!"
Yeah, that's the ticket. I want to follow the herd out of stocks, because that's the smart trade.
Nice sarcasm I guess whoever junked you has a narrow mind (doubtless one from the myriad "gold only goes up and all other investments are worthless" crowd that haunt this board). Stocks don't scare me, it's going to be zirp 4evah no matter where one decides to invest.
While I am not the one that junked him, I do wonder why people are surprised by the tone on this board. It would have been a nicer and <more reasonable> comment for him to simply say "I believe JNJ will be an excellent long-term investment given their record of dividend increases."
If you don't like the tone of the board, you should: (1) either make a comment with an argument attached (I enjoy hearing a different perspective); or (2) spend your time elsewhere, and not posting snarky comments. Snarkiness does not increase the value of the board to anyone...
"Sheeple! sell your stocks, buy bonds at 2% the world as we know it is ending!"
You didn't hear me or many others say the world is ending. I would like to think the game as currently played is ending.
sold to you
If that post was meant for me, would you please give me some context? Has an interesting ring to it.
Of course they just want out.
The steady campaign exposing the criminal syndicate that is Wall Street is working.
People see that the migration of retirement investments from defined benefit to 401k was part of the master plan to destroy the middle class.
The only question now is can they control the backlash of hate and resentment?
My bet is: no fucking way.
Yeah, instead of playing in the Casino, just send your checks to Jim Cramer direct... Nothing to see here... Move along...
Cramer should be euthanized by his handlers before the mob captures him and tears his limbs and head off.
How does one trust a system that hasn't changed, hasn't held anyone accountable for the world almost ending in the fall of 2008?
Two years ago, the world came hours away from ending, what has changed since then (other than millions more unemployed)?
Does anyone trust that they are being told the truth by anyone remotely associated with the current kleptocratic power structure in the USA?
Rhetoric and the illusion of change, is all hope and change has brought the USA.
Alas, at this point it is too late. The all in strategy of maintaining the status quo at any price has doomed a once great nation. All that is left is to pin the RIP dates on the tombstone.
When I let my mind drift with the wind by releasing my belief system and allowing myself to ponder possibilities, I often come back to earth with one reoccurring interesting idea.
Reality is not static. Reality is the constantly changing product of our perception and beliefs. There has been this feeling I've had for awhile that the powers that be are winding us up for a climax, a crescendo of massive change that's long been in the planning stage.
I won't beat a tired horse with links or books. For those with an open mind, it's clear that the world may not be controlled but most definitely is constantly influenced, poked and prodded towards open cattle shoots and loading pens. Since the fastest way to change reality its to change perception, while I don't believe all the doom and gloom being put out by the mainstream media regarding 2012, I do know that this concerted effort is not an accident or simply the media frenzy feeding upon the latest greatest. This is coordinated and accelerating.
At the same time, the collapse of the financial system is accelerating, not so much because it's naturally decaying but because it's being pushed in that direction with deliberate actions and policies. This is also irrefutable. They're deliberately not attempting to "fix" the economic system but are in fact destroying it.
So if one wanted to shove dramatic and lasting change down the throats of the world's citizens, it most certainly must come about by using fear, massive doses of fear, blindingly black fear of the type that sends chills down your spine and puckers your ass. So one might wish to mix a huge global currency crash with predictive TV media programming of the end of the world in 2012. I suspect that if this were to be choreographed well, many goals would be achieved.
Of course, this is all just a flight of fancy on a hot August afternoon.
Have you gone delirious on us? Hang in there as you are our oasis of sanity!
Clearly "they" are trying to stampede the herd. The actions we see roll out on a daily basis are either the product of madmen or geniuses. I see no madness, only genius. Why are they doing this? For what purpose? How do you think they will get the herd really running hard because the attempts to spook the herd are coming hard and fast, week after week. Calm them down, then spook them. Build up their hopes, then crush them.
Stop trying to use logic or "common sense" to understand what's going on because obviously what's happening lay outside our collective sense of "normal". This is precisely what will be used to panic the herd, an outlier event that we don't consider possible and thus dismiss.
I'm not saying 2012 as presented by the fawning corporate media is the end of the world. Not at all. I'm saying this meme is being pushed deliberately along with financial destruction and it could be used to spook the herd to give up a lot of money, assets and freedom.
Have you gone delirious on us? Hang in there as you are our oasis of sanity!
Oasis of sanity? Most of the time, yes. But this last post about "stampeding the heard" puts me in more of a "freaked out" place, not sane. I guess this where the old adage - "the truth hurts" comes into play??
Everyone is entitled to a romp thru the fun-house to gaze in the mirrors of distortion now and then. How can you know where the edge is unless you visit now and then to gauge?
Great analogy, very well said.
The thing is, the location of the edge is not static but actually ebbs and flows with our ever expanding and contracting consciousness. And I contend that it is moving, not just on an individual basis but collectively.
We are being primed my friend, of that I am certain. I don't proclaim to know what for or why. But if I walk into a room and I see a body on the floor, a large pool of blood under the body, shell casings and a gun next to the body and no sign of a pulse or breathing, I don't need to know who, what, when, or why to know there's a high probability there's a dead body on the floor.
Look up "Age of Kali"
I agree, Rocky. In fact I have made it a point throughout my life (after my one experience with LSD) to bring myself to the edge - forcing myself to get comfortable in that space of mind. That being said, CogDis's proverbial edge in this case is a locale that I have only recently explored - and will take a little getting used to. Klonapin will certainly help.
Nature has a better tool. Ayahuasca, psilocybin, mescaline, DMT etc. Use sparingly and only under supervision. I strongly urge that you seek out a sage guide and then trust in and follow to the letter his (or her) instructions. The sacred drugs are powerful and wondrous and are not playthings for idle hands.
Having taken LSD yourself, you already have a small window into the power of other drugs.
LSD was great fun, but too much time spent directing thoughts. Psilocybin was much more managable, haven't had any experience with the others, although a pretty little cactus button and the right environment have always been on my list. Pharma grade MDMA was also thought provoking - actually a lot of hand holding going on. Who would have thought that holding hands could be as good as sex?
Are you sure it was a hand you were holding when that good feeling came over you?
No, not really.
Shut down the nitrous tank and serenity will return. Slowly.
One must travel outside the box in order to see the box. One simply cannot use the same tools that restrict your perception solely to the inside of the box to see the outside. This is why the nitrous tank or more specifically Ayahuasca, psilocybin, mescaline, DMT etc. could be consider mandatory in order to find and then use a new set of tools.
Nitrous is just for playing about after the show is over.
To really see and understand, use of well prepared LSD a number of times in a one month period with no one to see or answer to can be a successful recipe. This should be repeated periodically through one's life. Especially when you feel like you are stuck in a rut.
CD... It is obvious...
The monetary profit system has no future... There are simply not enough natural resources for 7 billion plus capitalists to pull from the earth, consume and disgard at exponential rates simply to provide a basic wage... And don't even get me started on the state of our environmental life support system... The human labor energy component of our global economy is in the final process of, and will soon be completely eliminated by technology... And wasn't the promise of technology always that we would work less and have more time for the human aspects of life instead of our flesh and blood robot existence? There is no need for 40 plus hour working weeks once we can eliminate the 90% of jobs that need not even exist... We create jobs to create even more jobs to provide people with labor...
Of course the endgame is a global energy credit currency, what the fuck do people think cap and trade is/was? The failure of COP15 was an admission by the powers that be that we have left it to late to try and convince the masses and world governments to our collective need to exercise energy efficiency and produce sustainable and abundant energy for all...
When the monetary system has collapsed, I suspect it will be very easy to convince the masses to accept say, an energy credit card, when it means you get to eat... I suspect it will be sold to the public as "rations" which sounds a whole lot better does it not...
Anyway, call me a commie, crazy or whatever... Like it or not, that is the endgame and it is the only future mankind has... If we ever have a return to "gold money", kiss the dream of a global civilization good bye because we will know nothing but war and poverty until the last barrel of oil is pumped from the ground...
We are at the fork in mankinds road... The point in time when we get to choose our collective fate... One or Zero...
http://en.wikipedia.org/wiki/Kardashev_scale
Sanity lives on the edge of a razor Rocky - we all tilt and totter from time to time but it is the best of us that can see reality for what it is, play in the wind a bit while walking that fine line then slowly yet ultimately coming back to even measure living to see another sunrise and set.
For many, yes, that's true. I think that the more unprepared or unaware one is makes the edge sharper. There are many here at ZH who are more cognizant of the possibilities than the general public. I won't insult their pointy little heads by calling them names like sheeple, proletariat, bourgeoisie, plebians, etc. Let's just say they are no different from many who came before. We should be thankful for the common man. As I say, thank God for stupid people -- how else would you know you're smart? Fear is mitigated by knowledge.
Regarding the "sheeple" reference - thank you for pointing this out - we need the people!
Edit: not meant to sound elitist - I am the VI, after all. For those who are looking to affect a certain type of change - the last thing people who come to this site need to read is that (they) are being referred to in some derogatory manner when their purpose for coming here is to "find others."
Oh, come on now. Even if one of "them" visits he will think he is in some netherland of obfuscation. He would never equate himself with a sheeple anyhow. Ego prevents that. We would be written off as tin-foil hat wearers. And he might not be that far off if some of the comments I read are to be any gauge.
Rock,
I re-read your above post. Should have read it more closely the first time - I thought there was some common ground regarding the as yet, uneducated. Sure, there is a place for the above referenced descriptions - the unteachable. But for those who are here to learn, some may take offense. Do we right them off? Personally, I don't want to come off as some sort of elitist critical thinking type. And based on the way I phrased this reply, I have nothing to worry about.
I can't completely deny what you are saying, either.
Fear indeed. Its a great weapon of manipulation, but it can have unpredictable effects.
Interestingly enough, Castro (commie tyrant) would agree with you:
http://news.yahoo.com/s/ap/20100818/ap_on_re_la_am_ca/cb_cuba_castro_bildenberg
Anyway, 2012, 2013, 2017... its hard to see how this global charade will be prolonged -- extended and pretended -- until it all flies over the cliff.
Not good dude. 2012 is a year and a movie. Nothing more. And last I checked, CNBS is nothing but rosy about the economy. Everything is improving. So the MSM hasn't caught on to your *plan* yet.
First off, I agree "it" was just a movie. I assume you read my comment to the end. Second, fear is developed by way of tension. The fear meme can only be planted in the mind. No one "makes" your fearful or fear something. You create your own fear. The "fear" meme blooms when we give it power and make it real. So there must be tension, which is caused by one side saying all is well while another side is printing bad news and showing people getting thrown out of their homes and oil slicks as far as can been seen.
If all is being presented as well, fear won't, no can't, be present. I talk with average Joe's everyday and I smell lots of fear. People fear something bad this way comes. Doom and gloom. And TV is the ultimate in predictive programming. I suggest you spend some time studying media manipulation and psychological warfare. Both sides of the spectrum are always manipulated. It can't be black and white because then it won't be believable. It's in the gray area where fear grows.
Fear:
False
Expectations
Appearing
Real!
Commenting on 530777
Well said (again) CD
2012 has been constructed for the superstitious and "devout historians" of the group. There are many of these out there so the media messages (and accompanying advertising) are fairly wide spread.
Then there is the largest group: Those that believe in a benevolent government (after all, we voted for our leaders did we not?). The number of people in this group is shrinking rapidly. However, there are still many. So as you observe, there is a message delivered through the mainstream media each day to calm this large group. So far, it seems to be working. Many of the 2012 group are in this group as well. They just can't break away from the big lie. But they really like to feel they are not a Sheeple because they are pretty sure of what will happen in 2012. And they are prepared.
Then there is the smallest group. The "What if's". People that analyze and think for themselves. People that like to hear as may diverse opinions as possible and then form an original opinion of their own. Thankfully we see this group on a number of blogs, ZH being (in my opinion) one of the better of these sources where ideas are exchanged at a pace not seen 10 or 15 years ago.
One thing that is a certainty: ideas and opinions labeled as "conspiracy theories", "Whack jobs ideas" etc. usually are proven to be true a number of years later. This has been seen over time to be true at a very high percentage.
It takes time for the media to "lay off" the story. Later the masses in group 2 realize that the "conspiracy theory" from 10 or 15 years ago is true but it does not change their thinking. They disassociate the activities of earlier regimes and media reporting from the current day. They think: "Well that's not happening any more". Where they really should be seeing the pattern of centuries of lies and manipulations repeating themselves over and over again. Why? Because it works for the power elite and has been for centuries.
Think for yourself.
Think for yourself
Question authority
Throughout human history, as our species has faced the frightening, terrorizing fact that we do not know who we are, or where we are going in this ocean of chaos, it has been the authorities, the political, the religious, the educational authorities who attempted to comfort us by giving us order, rules, regulations, informing, forming in our minds their view of reality. To think for yourself you must question authority and learn how to put yourself in a state of vulnerable, open-mindedness; chaotic, confused, vulnerability to inform yourself.
Think for yourself.
Question authority.
Find yourself, then find the others.
"Find yourself, then find the others."
poetic urgency - nicely written.
It's not my original work but I use it liberally. The genius behind it is below.
http://thecleaver.blogspot.com/
You are correct but you forgot the Tech Reck in 2000 and the Cremation of the market on 911. Yes, then 2008.
Everyone has been shell shocked by the Boom Bust Cycle. 3 in 10 years.
Bottom line your Money is NOT SAFE in the Market. Let the Too Big to Fail Banks have to themselves. At least they will not Steal from US.
Thought the point of yesterday's article was the money flow was to the ETF arena - is this not correct?
What I am curious about is how much of the overall pool does $48 billion represent? In other words, this number represents what percent of the whole long term mutual fund category?
Having this normalized to the total would help me understand the significance. And no, TFA doesn't provide this information either. It may be somewhere on ICI's web site, but I didn't go digging very far.
An ETF as anything more than a trade makes no sense to me but they are being pushed to Joe Schmo as the investment vehicle of the future. It is possible that many people have said "Look what my managed funds have done with my money, I can do better than that and save the fees, these new ETF thingies are the answer to all my needs."
It would need a substantial investor survey to prove it but it may be another factor in the outflows. That of course would mean that ETF's are setting up to be another fine 'meercan investment vee-hicle.
Whoops, missed all the earlier comments and yesterday's article. A doofus, I am.
The volatility has driven "retail" investors out of the only assets worth owning in the US - corporations(stocks). Watch as the big fish(who are loaded with cash and have access to very cheap credit) buy up the interesting assets around the country. Then once all the good assets are owned by the players - the prices will take a huge jump. Then the sheeple will be locked out for good. And we can sell WallMart or some such to the Chinese in settlement of the the couple Trillion we owe them. Everybody happy.
The Chinese do not want WallMart they want our Farmland.
Keep in mind that all of your Real Estate is really not owned by you even if you have paid it off. The Government has the right to Seize it for Taxes. Or to Tax it out of your hands, when taxes become overbearing.
Every American is actually Owned by the Government thru their Taxation, whether it be thru Income Taxes or Property Taxes, we are Owned and Pledged for the Governments Debts.
VERY true. It's amazing how few Americans realize this basic point: All real estate in America is rented from the US Government.
You can call it "taxation" if it makes you feel better, but nothing can change the inescapable reality that the land is *not* yours. Try not paying your rent (ie: "taxes") on "your" property and see who really owns it.
Private ownership of property in the USA is a mythology deeply ingrained in the American psyche, but it doesn't take a rocket scientist to see through the sham. Owners are renters with a slightly larger deposit, and more exposure to risk.
sold to DA FED
look, the program has taken the dow down 150, no doubt GFS and JPFM have been perfectly positioned for every little wiggle of this 100% manipulated farce
"I'm mad as hell, and I'm not going to take this anymore!"
me? I'm kind of irritated, and I'll probably take it...
Methinks the money is simply needed elsewhere. With bills to pay, kids to raise, school to pay for, and all that, money is leaving its traditional storage venues. Not sure I'd attribute any global money theory or conspiratorial motives to simple human nature. There is ample confirmation bias out there (e.g., Flash Crash) for folks to naturally move away from traditional investing vehicles.
Methinks you are correct.
btw, Solari refers to the current process as the 'Slow Burn'.
As I have pointed out elsewhere, this oroboros that we are in will last a whole lot longer than anyone suspects and will be devastating to the life styles of millions.
The unfunny thing is, I haven't found a safe place to hide.
===8-0
Easy, Canada.
yes, but don't go anywhere near the big cities, they have all the same problems as down in the states.
Do you mean hide physically or economically? If one is prepared in all matters economic, one can "hide" in plain sight.
+1
I should have added: If you are well armed!
Once a casino is known to be full of rigged games, no one goes there anymore. Cash me out, bitchez.
retail investors are probably selling mainly because THEY NEED THE CASH TO PAY BILLS
no more housing atm, of course they're net sellers
Also interesting is the bond inflow data:
7/28/2010 8/4/2010 8/11/2010
================================================
Total Equity -4,074 -2,201 -1,427
Domestic -4,296 -2,122 -2,073
Foreign 222 -79 646
Hybrid* 69 233 213
Total Bond 7,099 7,551 7,169
Taxable 6,112 6,350 5,788
Municipal 987 1,201 1,382
================================================
Total 3,094 5,583 5,955
* Hybrid funds can invest in equity and/or fixed-income
securities
Source: http://bit.ly/cqfgPy
If you haven't received a standing O for that avatar yet please let me rise.
People can run to 'safety of bonds' all they like but I dont believe it at all. What are bonds backed by, dollars? Oh yea thats real safe. I'll take the safety of Russian Roulette any day, thats only 1 in 6 certain death. Bonds are playing with 6 bullets chambered.
call me a simpleton, but how can there be a "net" outflow out of equities - isn't there a buyer for every seller?
You raise a very good point. I believe they are tracking the net flows in the fund sector, so they are also tracking redemptions, where the fund is the "buyer." These numbers do provide a pretty decent sense of the market psychology in the retail community (although many could be re-allocating to etfs for fee and other reasons). Nevertheless, peak fund flows have proven to be a pretty decent contrarian indicator: peak inflows designate market tops and vice versa. If that is the case here, short bonds, buy stocks?
http://bit.ly/c6feKn
http://bit.ly/dnHllG
I think part of what’s going on in the stock market is an outflow of the true accounting equity backing the assets. Retail investors are bailing and taking 100% of their funds elsewhere. Meanwhile, Hedge funds and prop traders are buying in with leveraged capital, including funds they borrowed at ridiculously low Fed subsidized rates. That’s effectively a net equity outflow to me. The increase in leverage of the average investor also adds risk to the markets which has nothing to do with the risk of the underlying assets. That’s consistent with the increase in price volatility we’ve seen recently.
Q2 Soros unloaded $3 billion out of $8 billion invested in US Equities, of the remaining 5 billion 13% was in GLD ETF.
that looks like inverse HnS. By the way, isn't it almost axiomatic that retail investors, in aggregate, do the wrong thing? as in piling into bond funds..... watching this thing rally today, need to break out of 75 3/4s to get the party started.
What I don't get is why the hell something that's decent like WDC been sold down to like 4PE.
So of the $48 billion about 6% of that was just Soros getting out of his positions...
Reset. China gets Taiwan and Germany gets some prime sea side real estate.
There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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