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Whopping $9 Billion In Equity Fund Outflows Following Flash Crash
ICI has reported the most recent fund flow data, and it's a doozy. In the week following the flash crash, domestic equity funds saw a whopping $8.6 billion in outflows. As a result, the YTD outflow is over $9 billion, so in essence after almost going back to breakeven before May 6, equity funds are now once again solidly in the red, even as Primary Dealers and HFTs continue to play "hot potato market" with each other. In addition to the carnage in domestic equities, all other mutual funds saw an outflow in the prior week, including foreign equities ($3.7) billion, Hybrid ($0.7) billion, and total bond funds ($1.0) billion, for the first total net outflow across all products in over a year.We will bring you AMG/Lipper fund data once we get it, although we do not expect any notable discrepancies.
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$9 Billion is the new $9,000.
It's more like 'stop-loss' is the new 'recognize loss'.
Anyone who still thinks a GTC stop-loss order is some kind of insurance policy has been on a desert island for the past month.
It's only money. Ben can print more after he wipes his ass and that will give Goldman more play money.
The perfect gun just shot another 9 billion dollar bullet.
When all of this is said and done, we'll all sit around and have at laugh at the fact that there was only ever really $128.36 in canadian money and the rest was all notional.
Scare the little retail suckers so the big hedgies can scoop up shares on the cheap. Never, ever fails! By the way, if another "flash crash" happens, the financial services industry is cooked. Game over.
...Sure....because after all...this laughable market is such an accurate reflection of the ever increasing bullish underlying realities...
BUY! Bye! die....
'Cheap shares', Leo? Using what standard of measure? Future bubble Ponzinomics?
Remove the Fiatsco pipeline and youve got a S&P of what, maybe 400 max as reflected by a present realistic P/E?
The script has changed this time Leo. Demographics are not on your side. Boomers will be net sellers of equities going forward... and I am fairly confident retail is scared Shi*less over the volatility they have been seeing.
That is what worries me the most. I had lunch with a fund of hedge funds manager yesterday and we were talking about the "flash crash" and how it scares people off markets. In his own words "this could be a generational shift with profound implications". The problem is where are people going to invest? It's a tough environment but you have to accept that volatility may be a harbinger of things to come. The HFT and algos have ruined these markets. Retail can't compete with superfast multi-million dollar computers.
"The problem is where are people going to invest?"
When people consider investing gambling at a rigged table, they no longer see it as investing but instead being stolen from. That's when their view changes to preservation of their money rather than growth of their money. Return of capital rather than return on capital.
I don't need to apologize to my clients any more when they aren't making much money because in their eyes they ain't losing it.
I no longer trust the Banks or Wall Street. And, I do consider it rigged. IMO investing is dead. All that remains is gambling, so I have been moving my investments to physical PM's for wealth preservation. I am in PM's for the long-term, because I don't see any financial regulations like Glass-Steagall in the pipeline. I think this is a fools market, especially now that Germany is declaring war against the speculators. I won't get back into this market until there is allot of Investment Bank and Hedge Fund blood in the water. They have to be significantly weakened before investing replaces gambling. And,I think a Tobin Tax will be required on all HTF call's/put's to remove the high volume of price discovery transactions prior to the completed trade.
And I don't want to hear any shit about the average investor being stupid and how this is actually bullish and blah, blah, blah.
President B'rock O'bottom promised us a "fundamental transformation". Well, here's a fundamental change for ya: Average investors have caught on the the Wall Street game/ripoff/ponzi. They are heading for the exits in droves. This trend will not reverse. The stock market has become one great game of musical chairs, played exclusively by the trading desks of the TBTF banks.
He got his wish
yep, and now they will start betting and gambling with each other since theres no one left.Computer vs computer, this market will just drift down like a canoe would in a lazy river..
"President B'rock O'bottom promised..."
Don't Worry Turd
Fat Larry is on it...
Crunching the numbers on that website's historical data, there has been a net total equity outflow of 122.66 billion since 1/31/2007.
The net total bond inflow, on the other hand, is 636.66 billion since 1/31/07.
That couldn't possibly mean a bond bubble. It just couldn't.
when all the chickens have left the building, its time to get in for the next QE melt up.
amen
There is heavy selling going on. Circa late 2007. It looks like to me everyone, including hedge-funds are completely bailing the stock market. We may get a meager bounce here but it's only temporary before a huge move down. Just my two cents.
Yeah...but...but...tha Squid an some Squidlets are blobbing up^.
All charting supercomputers and algorithms aside, the real issue to me is the 'retail investor' sees its all a scam, nothings getting better, and wants their money out of the rigged casino to stock up the pantry. Reality is setting in, the worst thing for a Ponzi pyramid scheme.
+1
Reality setting in is fine, until it's a horror. People won't face reality if it is likely to kill them. They'll actual pretend that there is an alternative reality that does not include the horror, just to defend a world view wherein they are not dead.
Then they die anyway, of course, but that's besides the point. The point is, they never faced reality and after they were dead, it didn't matter.
I didn't say it made any sense.
Significant outflow=market rally?
It's 3:45 and the PPT is hard at work... Looking forward to Robot Trader's charts.
Can I ask a dumb question?
Where did the money go?
Nine billion dollars flew to where?
Bonds.
Exactly. Its where the US govt needs it to be to fund the ever-expanding federal budget.
I Pads, 3 D Televisions, NBA and NHL playoff tickets.
"I Pads..."
The country is on the rag...
With all these outflows, certainly, we can't be far from the point of maximum pessissim. Meanwhile, bonds seem to be in a bubble of epic proportions, ripe for a 90% crash (conservatively speaking!).
The money never really leaves the system...
the next destruction for the retail fellows will be the bond market collapse..
bond market is much greater bubble than equities -- LT interest rates is the canary in the coal mine.. its very possible that we'll see 10 yr rates above 10% in 3 years..
this is extremely bullish for reasons to go higher....climbing the wall of worry
Everyone out of the stock market its going to crash
9 billion dollars into the treasurey money market accounts. Everyone into the dollar.
Everyone into the treasury funds.....Then they can devalue your money by 75%.....oh wait thats already started gold at 1200....How about a whole new currency how about a 3 for 1?
No where to run to where to hide except gold...
If GS comes up a winner again in the 2Q then we know the selloff was preplanned. Scare tactic to politicians trying to pass financial legislation, scare tactic to stockmarket to entice people to buy treasuries, plus more volume thus more money made off trades. They are a Primary dealers for treasuries too . Right? The derivatives legislation to make it illegal for banks to deal in derivatives was voted down today, so I wouldn't be surprised if we have a meltup tomorrow.
EURUSD buying support is still evident.
Daily chart is now extremely oversold, will post a chart soon.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1