What Confidence? Retail Investors Are Still Not in Equities
As we hear more and more pundits talk about the soaring consumer confidence, the "recovery", and how the fundamentals are improving, keep in mind that retail investors are still not in equities. As of November 14th, equities continued their streak of consecutive mutual fund outflows that dates back to February of this year.
During that time, more than $115 billion dollars has left the equities market. Where's it going? Well, in spite of the Fed's best attempts at pushing the "dumb money" out of fixed income and into chasing returns, it looks as though the exact opposite is happening.
Oddly enough, the S&P seems to be continuing its climb toward the heavens, even with this outflow. This certainly couldn't be the work of Kevin Henry and bank prop desks putting their free money to work could it?
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