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US Retail Investors Throw Up On Bernanke's Invitation To Buy Stocks

Tyler Durden's picture


Another week, another retail outflow from domestic equity mutual funds - but this time it's different. Now 11 weeks-in-a-row of outflows have led to this week's highest outflow since August 2011 - just as stocks hit multi-year highs. It seems no matter how much Bernanke says 'come on in, the water is fine', the newly-smart money (or fooled one too many times perhaps - is it any wonder when only yesterday CNBC was discussing Selling AAPL Puts as a viable strategy?) of the retail investor is smelling sharks and fading the strength. With $250bn in outflows since the start of 2011, and $50bn alone in the last 11 weeks (as the market inexorably rises on Johnny-5's instruction), we can't help but think this week's $10.6bn outflow is redemptions at the end of Q3 - not exactly what the performance-chasing, money-on-the-sideline-hoping, recovery-is-around-the-corner-believing long-only commission-taking 'managers' wanted to see.



Data: ICI


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Thu, 10/11/2012 - 14:04 | 2878204 TruthInSunshine
TruthInSunshine's picture

Sell-Side Wall Street to Jimmy Q. Public:  


"Tell me, Jimmy, do you like gladiator movies?"

Thu, 10/11/2012 - 14:06 | 2878214 vast-dom
vast-dom's picture

Bernank no need no retail investor; Bernank give infinity to bank; die sheeple die.

Thu, 10/11/2012 - 14:09 | 2878236 ParkAveFlasher
ParkAveFlasher's picture

These two comments plus headline = lmao

Nothing more to add.

Thu, 10/11/2012 - 14:20 | 2878289 vmromk
vmromk's picture

Hahahaha.....SUCK MY COCK BERNANKE !!!

Thu, 10/11/2012 - 14:20 | 2878293 redpill
redpill's picture

Can I hear a "Fuck you Bernanke!"

Thu, 10/11/2012 - 14:27 | 2878324 fuu
fuu's picture

Fuck you Bernanke!

Thu, 10/11/2012 - 14:34 | 2878355 kito
kito's picture

COME ON..............LOUDER!!!! FUCK YOU BERNANKE!!!!!!!!!!!!!!!!!!!!!!

Thu, 10/11/2012 - 15:10 | 2878513 asteroids
asteroids's picture

Dear Ben: Due to your "saving" of the banks and their never losing market days, retail is FUCKING BROKE, you moron. Congrats on destroying the market with unchecked greed.

Thu, 10/11/2012 - 18:18 | 2879041 HardAssets
HardAssets's picture

If they can't steal it from the sheeple at their rigged casino - - they'll just tax and inflate away any wealth the people have left.

Will Joe Public take his attention off the big screen t.v. - when he really starts to get squeezed ?

Thu, 10/11/2012 - 14:11 | 2878252 davinci7_gis
davinci7_gis's picture

Joe Public knows that no matter how much $$ you print..when you have 11% unemployment, no one wants to spend $$...can anyone say stagflation?

Thu, 10/11/2012 - 18:04 | 2879016 fockewulf190
fockewulf190's picture

I pulled every last dime out of the stock market back in late 2008 and converted everything to Phyzz. Been stacking ever since. Absolutely no regrets. Paper smashdowns don't mean shit to me. If anything, I BTFD with whatever incresingly worthless fiat I happen to have on hand with every opportunity Blythe throws my way.

When you hear arguements about machines having a trading advantage over other machines merely because of the length of the cable between servers, is it any wonder that retail is fleeing for the exits? Who in there right mind is going to trust their money in such a system? Frankly, I'm surprised CNBC is even still in business.

Thu, 10/11/2012 - 16:01 | 2878725 petolo
petolo's picture

WALL-ST-MART coming to a neighborhood near you. 

Thu, 10/11/2012 - 16:16 | 2878765 SheepDog-One
SheepDog-One's picture

I dont care how convincing a Great White shark in a 3 piece suit and $1,000 shoes may sound when he says 'Come on in, the waters just FINE!'....dont do it.

Thu, 10/11/2012 - 14:04 | 2878205 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

Redshield alert!

Iceland Dismantles The Corrupt, Arrests 10 Rothschild Bankers, Then Issues Interpol Arrest Warrant For Rothschild Banker Sigurdur Einarsson!

Thu, 10/11/2012 - 14:12 | 2878255 kaiserhoff
kaiserhoff's picture

Finally, someone knows how to play this game.

Thu, 10/11/2012 - 14:19 | 2878286 TruthInSunshine
TruthInSunshine's picture

Is that real? I tried to search for confirmation but my Icelandic is very rusty.

Thu, 10/11/2012 - 14:28 | 2878323 jayman21
jayman21's picture


Thu, 10/11/2012 - 14:28 | 2878326 q99x2
q99x2's picture

It would be nice. But, judging from the tone of the website it does not appear credible. Maybe it is.

Thu, 10/11/2012 - 15:09 | 2878505 mayavision2012
Thu, 10/11/2012 - 17:37 | 2878966 WillyGroper
WillyGroper's picture

May 2010. Really?

Thu, 10/11/2012 - 14:26 | 2878320 jayman21
jayman21's picture

Interesting Link.  Thanks.

Thu, 10/11/2012 - 14:36 | 2878362 walküre
walküre's picture

But his last name is NOT Rothschild! /sarc

Thu, 10/11/2012 - 15:07 | 2878493 mayavision2012
mayavision2012's picture

We are all Icelanders now!  Awesome, Iceland!

Thu, 10/11/2012 - 15:18 | 2878544 WillyGroper
WillyGroper's picture

June 2012. Really?

Thu, 10/11/2012 - 14:04 | 2878206 HedgeAccordingly
HedgeAccordingly's picture

The market is a decaying shell of a once efficient model. sad - but we still have chicks -

Thu, 10/11/2012 - 14:10 | 2878242 ParkAveFlasher
ParkAveFlasher's picture

I'd hit that armpit.

Thu, 10/11/2012 - 14:51 | 2878419 JPM Hater001
JPM Hater001's picture

I knew we couldnt hold it green today.

This is like watching a drunk guy who just realized he stood up.

"Now what the hell do I do?"

Thu, 10/11/2012 - 23:08 | 2879781 StychoKiller
StychoKiller's picture

Danni Ashe, STILL the best put-together babe in da world!

Thu, 10/11/2012 - 14:05 | 2878210 fonzannoon
fonzannoon's picture

Break the buck on that money market and let's get em in at gunpoint.

Thu, 10/11/2012 - 14:06 | 2878216 Meesohaawnee
Meesohaawnee's picture

I wish i can say "tza bitchez"... with conviction, but weve been here before.

Thu, 10/11/2012 - 14:07 | 2878221 Dr. Engali
Dr. Engali's picture

It's too bad retail is piling into that safe "asset"...ahem..liability called bonds. When that bubble blows it's all over for Mr. and Mrs. retail.

Thu, 10/11/2012 - 14:16 | 2878273 fonzannoon
fonzannoon's picture

Doc serious question. Is there a better chance the Fed steps away from buying treasuries and watches the most incredible bubble in history blow sky high and taking everyone with it? Or better chance two years from now gas is $6 food prices have exploded, gold is 3.5k and Bernanke is out there with his nose growing by the second as he claims rates have to remain low and there is no inflation?

Which way we goin?

Thu, 10/11/2012 - 14:21 | 2878297 redpill
redpill's picture

Option 2.

Central planners will always maintain the status quo as absolutely long as possible.

Thu, 10/11/2012 - 14:24 | 2878309 fonzannoon
fonzannoon's picture

It's a tough call. My guess is option one surprises everyone and yet we still end up with $6 gas etc. But they have certainly made it clear they are okay with option 2.

Thu, 10/11/2012 - 14:29 | 2878333 youngman
youngman's picture

I will add that Bernankes balance sheet will have exploded by 5 trillion by then....

Thu, 10/11/2012 - 14:30 | 2878336 kito
kito's picture

bernanke will do anything to save the dollar........a deflationary collapse he walks away to save the dollar if he knows the alternative is to completely annihilate the dollar....................if hyperinflation did manifest, he would make sure the dollar was quickly pegged back to the $8,000 tonnes of gold (assuming, big assumption i know) sitting under manhattan..........he will never let the dollar turn to dust......................

Thu, 10/11/2012 - 14:57 | 2878442 JPM Hater001
JPM Hater001's picture

Actually, and this is a prediction and nothing else, I think they'll just find him dead one day.

See you at the FEMA Camp everyone.

Thu, 10/11/2012 - 20:20 | 2879236 Papasmurf
Papasmurf's picture

He should probably stay away from helicopters.

Thu, 10/11/2012 - 14:30 | 2878337 Dr. Engali
Dr. Engali's picture

I don't think there is a chance in heck the fed will step away from treasuries. It doesn't matter who is at the helm they will be buying. Tyler said if Mitt wins Bill Dudley will be the fed chair and Dudley is a bigger dove than Ben.

Thu, 10/11/2012 - 14:36 | 2878350 fonzannoon
fonzannoon's picture

I guess my point is. If that is the case....and it certainly seems the way we are heading...the bond market never really explodes right? You just get paid back in worthless dollars. Or am I missing a part of the equation?

Lately Jamie Dimon and Romney etc. have said ( I know I know I am nuts for believing anything they say) that the bond markets will turn against the US.

Thu, 10/11/2012 - 14:40 | 2878375 Dr. Engali
Dr. Engali's picture

That's true when it comes to treasuries but that's not necessarily what retail is buying. Take a look at how junk and corporates are trading. At some point in time the bond vigilantes will wake up and overwhelm Ben too.

Thu, 10/11/2012 - 14:52 | 2878420 fonzannoon
fonzannoon's picture

It's going to be interesting to watch the insane dislocations that take place. To your point if the ten year is 1.5% and 10 year investment grade credit has blown out to 10%....

I'd rather own non financial corporates but no junk. Anything that has not already borrowed massive amounts of money is probably toast down the road.

Thu, 10/11/2012 - 14:48 | 2878412 kito
kito's picture

it does creep me out that romney and dimon have mentioned it.............i cant figure out what they could be up to but it cant be good for any of us...that much we can figure out.........

Thu, 10/11/2012 - 14:55 | 2878434 fonzannoon
fonzannoon's picture

I think it is kind of simple. The bond market will inflict the austerity that the politicans will not. This group of politicians will be far far away with a nice setup and future elected idiots will blame them. But in the meantime everyone else will have to take their medicine. The markets will be decimated but the dollar will supposedly be saved.

Thu, 10/11/2012 - 14:58 | 2878450 kito
kito's picture

i still have no doubt that the dollar will be saved. thats why i call for people to save physical cash because it will be very hard to come by...the ratio of digital dollars to physical is mindnumbing.....but why would romney say that the bond markets will turn when he is one of the "future elected idiots" that will have to deal with it....unless of course he already knows he isnt winning?????..................

Thu, 10/11/2012 - 15:20 | 2878550 fonzannoon
fonzannoon's picture

probably because it will seem like he was smart enough to predict it even though there was nothing he could do about it. It would make him seem credible.

Thu, 10/11/2012 - 14:07 | 2878222 orangedrinkandchips
orangedrinkandchips's picture

Hey me pull a rabbit out of my ass!!!



Thu, 10/11/2012 - 14:08 | 2878231 Roubinesque
Roubinesque's picture

Maybe people are accelerating withdrawals to buy jobs on the new BLS exchange.

Thu, 10/11/2012 - 14:09 | 2878235 Unprepared
Unprepared's picture

Madonna is proof reality cannot be liposuctionned forever.

Thu, 10/11/2012 - 14:09 | 2878237 Joebloinvestor
Joebloinvestor's picture

Why doesn't Ben just start buying stock to?

Thu, 10/11/2012 - 14:09 | 2878238 Buzzworthy
Buzzworthy's picture

Not sure if "smart money" is the way to put it given that the buying power of the dollar is being debased all the time.  I sat on the sidelines for 2 years until the Bernank went "all in".  Now I don't have a choice but to be in the market because I cannot get my fiat out of my 401k to buy PMs with.  I can earn absolutely nothing being in a money market fund or risk all of my increasingly worthless fiat in the stock market.  These are the choices for people like me whose retirement funds are trapped in the system.  In this case, the "smart" money is that which tries to retain value by whatever means are available.

Thu, 10/11/2012 - 14:11 | 2878253 ParkAveFlasher
ParkAveFlasher's picture

You can't "take out a loan" against your 401k? 

Do you at least get visiting rights to your imprisoned money for a brief fondle?

Thu, 10/11/2012 - 14:30 | 2878339 youngman
youngman's picture

If you can manage your CEF or PHYS or PSLV...

Thu, 10/11/2012 - 14:59 | 2878453 CPL
CPL's picture

You are assuming there really is anything in the 401k other than a represented number on a bank statement.  

Thu, 10/11/2012 - 15:28 | 2878582 moonman
moonman's picture

Same problem with my 403b.

I need to die or get fired, evicted,divorced or do major renovations on my primary residence to get money out. Hey how about I pay the taxes and the penalty and we call it even? Nope I am stuck and when everyone sells I am stuck watching my retirement disappear.

No more contributions.

Thu, 10/11/2012 - 15:53 | 2878687 WillyGroper
WillyGroper's picture

If you have any post tax $$ you can roll that out/over plus the cap gains (you'll owe taxes on that) to a roth. Make it a self directed roth ira.

Thu, 10/11/2012 - 14:09 | 2878240 not fat not stupid
not fat not stupid's picture

The flood of well deserved bad press on HFTs has more to do with the dismal numbers than QE3. It seems everyone knows the market is broken, except for the exchanges and investment banks.


If retailers thought they had a fair shot, they might take a risk.

Thu, 10/11/2012 - 14:57 | 2878440 Meesohaawnee
Meesohaawnee's picture

which is why the wsj is a crock. last week they ran a story i think regarding HFTs ie thats the reason retail wont get in. no no no. its because retail knows this is a propped up rigged abortion. another half truth. shocker

Thu, 10/11/2012 - 14:10 | 2878243 q99x2
q99x2's picture

Exit stage left. Here we go again.

Thu, 10/11/2012 - 14:13 | 2878249 devo
devo's picture

It's getting a bit incestuous in there.

Thu, 10/11/2012 - 14:11 | 2878250 JustObserving
JustObserving's picture

Shall we play a game... Let's play Thermonuclear destruction of your retirement by HFT traders.  Bernanke must be disappointed that some are declining his gracious invitation.

Thu, 10/11/2012 - 14:23 | 2878306 LouisDega
LouisDega's picture

Retirement.. Yea, I had one of those.

Thu, 10/11/2012 - 14:14 | 2878266 dariomilano
dariomilano's picture


Thu, 10/11/2012 - 14:16 | 2878272 slaughterer
slaughterer's picture

QQQ needs Potter love.  

Thu, 10/11/2012 - 14:16 | 2878277 PUD
PUD's picture

To be fair etf's have seen record inflows..just sayin

Thu, 10/11/2012 - 14:20 | 2878291 Tyler Durden
Tyler Durden's picture

Junk Bond ETFs

Thu, 10/11/2012 - 14:24 | 2878310 Cursive
Cursive's picture


I hear this counter argument from time to time.  A few thoughts:

  • Is it equity ETF's?
  • If so, are the inflows into equity ETF's dollar-for-dollar the same as outflows from equity mutual funds?
  • If so, also consider that ETF's are inherently less "sticky" for fund families/underwriters.  Schwab is braging that their ETF's are lower cost than Vanguard and these products can be traded in your account commission free.  When it gets this competitive, expect the roof to cave in on some of these money managers.
Thu, 10/11/2012 - 14:25 | 2878312 Roubinesque
Roubinesque's picture

If your into 3x etf shorts, should that count as an inflow?

Thu, 10/11/2012 - 14:35 | 2878359 akak
akak's picture

What are my "into 3X eft shorts"?

Thu, 10/11/2012 - 17:26 | 2878944 Roubinesque
Roubinesque's picture


Thu, 10/11/2012 - 14:18 | 2878283 Cursive
Cursive's picture

Watched CNBS yesterday.  ROFLMAO!  The number of bulltard managers.  They may as well flash a blinking "BTFD" across the screen.  It's over.  The love affair with stocks is over.  Check back in 10 to 20 years.

Thu, 10/11/2012 - 14:28 | 2878325 Quinvarius
Quinvarius's picture

CNBC is always full of bulltards.  Reactions of uber disgust to the bulltards is what I am interested in as far as psychology goes.  But really, they printed a buttload of money and gave it to the speculator class.  That is all you need to know.  The business end will catch up.

Thu, 10/11/2012 - 15:06 | 2878488 kito
kito's picture

cursive buy now!!!! grandpa warren says something about fear and greed and stocks and he is always right!!!!!........cnbc says buy and now and be left holding the bag ;).......

Thu, 10/11/2012 - 20:27 | 2879249 Papasmurf
Papasmurf's picture

The market was up 0.3% this morning and CNBC called it a "rally".

Thu, 10/11/2012 - 14:20 | 2878292 yogibear
yogibear's picture

Bernanke's photo is a good backdrop to a dart board. In times past these fed members would be listed as public enemies.

Thu, 10/11/2012 - 14:38 | 2878380 walküre
walküre's picture

He's the King of Spades in my personal deck of cards.

Thu, 10/11/2012 - 14:21 | 2878299 Quinvarius
Quinvarius's picture

My thesis is bullish.

Thu, 10/11/2012 - 14:23 | 2878307 Sixdeuce062
Sixdeuce062's picture

Bernanke: really guys you can trust me here see the huge pile of dollars we have the money and i can always print more

Thu, 10/11/2012 - 14:37 | 2878313 benbushiii
benbushiii's picture

The retail investor does not have enough $s to make any form of QE work for him.  They are seeing the dollar debased and the real cost of living in food and energy is going up.  In the past they were able to generate some fixed income, not now.  They are unemployed or have rolled down to a lower paying full or part time job.  They are in liquidation mode just to survive.  One cannot create enough wealth for them through the Central Banks' experiments.  As this progresses the amount of social upheaval will will continue to rise as the supppresion of the common man / investor is excacerbated by the Central Banks.  People would be equities if they did not believe the game was rigged against them.  I guess one might see an inflow if the retail investor was given a CTRL+P option.

Thu, 10/11/2012 - 14:25 | 2878314 The Count
The Count's picture

Most underreported (in the U.S.) fact that could cause a major SHTF.

The Turkish-Syrian conflict is ongoing and reaching new levels every day. Now, a true conflict between those two might not cause a pan European crisis but if the Israelis think they can use the confusion to attack friends, in that case you better get the hell out of any and all markets you might still be in. Because all bets are now off.

Thu, 10/11/2012 - 14:29 | 2878331 slaughterer
slaughterer's picture

@The Count, thanks, you are correct, it is amazing to what level the MSM is ignoring the news in the Middle East right now,  

Thu, 10/11/2012 - 14:32 | 2878346 Sixdeuce062
Sixdeuce062's picture

They do what they are told they ignore alot of stuff and only tell you what they think you need to know

Thu, 10/11/2012 - 14:38 | 2878378 AlphaHunter001
AlphaHunter001's picture


No, they do what's 'hot' and 'trending' - it's silly to have traders commenting on what's on Twitter. There are no real newspeople anymore, they just shovel the garbage that the public consumes - CNBC is becoming like TMZ, all fluff and no substance


Bloomberg TV is a bit better as they have some contrary opinions - that's what I suggest everyone does, read from both the left and right wing because the truth is always in the middle


btw: i agree, this whole Syria/Turkey situation could become really bad - not to mention once the elections end in Israel, the PM will then have the mandate to attack Iran - I suggest looking to oil and waiting for load up in Q1 next year

Thu, 10/11/2012 - 14:40 | 2878382 The Count
The Count's picture


Recent example of that...CBS evening news 2-3 nights ago with a feature on how the ambassador in Lybia was killed. All kinds of extraneous tidbits of info, just not the real kicker, that a government security evaluation of the compound a few months earlier denied the request for increased security measrues.... This kind of 'leave out the really importatn shit' or 'don't ask the right questions' happens alll the time.

Thu, 10/11/2012 - 15:48 | 2878666 Red Raspberry
Red Raspberry's picture

Also they leave out the House cut spending for embassy security funding by $128 million in fiscal 2011 and $331 million in fiscal 2012.

Thu, 10/11/2012 - 14:51 | 2878418 toomanyfakecons...
toomanyfakeconservatives's picture

Just another distraction from Benghazigate. The prez lied and people died.

Thu, 10/11/2012 - 14:34 | 2878356 AlphaHunter001
AlphaHunter001's picture


The funny thing is that this data is bullish as most retail investors are wrong. Place this chart agains the S&P and you'll see the public sells near the lows and buys near the highs... which means that this money will eventually come back into the market


Unfortunately I've been waiting for a sell-off this fall, but this data means that higher prices are more likely... personally I think QE3 has been baked into the cake as all assets have gone up too fast like stocks, gold etc... but can't fight the trend if one is to stay liquid and profitable

Thu, 10/11/2012 - 14:38 | 2878370 Zero Govt
Zero Govt's picture

US Retail Investors Throw Up On Bernanke's Invitation To Buy Stocks

US Retail Investors Throw Up On Bernanke.

There, fixed


Thu, 10/11/2012 - 14:38 | 2878381 Brother Sebastian
Brother Sebastian's picture

Assuming that Bernanke also has the ability, through his trading desk and tbtf bank partners to manipulate the indexes, one might assume this is a staged sell-off.  When it's over, all the retail investors who jumped ship will clamor aboard for another upward ride.  This has been going on for too long now not to be noticed.

Thu, 10/11/2012 - 14:51 | 2878416 pitz
pitz's picture

So the sheeple are piling into bonds and cash, which are even larger bubbles. 

Stupid motherfuckers.

Thu, 10/11/2012 - 15:35 | 2878615 Zero Govt
Zero Govt's picture

Cash is good, electronic digits not so much as it means your money is still in the banking system.

Remember that old saying, a bunch (of cash) in the hand is worth 2 in the bank

Thu, 10/11/2012 - 14:53 | 2878425 The trend is yo...
The trend is your friend's picture

take the market higher Bernanke, I have more stock to sell and convert to gold and silver

Thu, 10/11/2012 - 14:53 | 2878427 digitlman
digitlman's picture

Looks like ZH chat is down...i miss it so......

Thu, 10/11/2012 - 14:58 | 2878445 Northeaster
Northeaster's picture

<<<Retailer that left and received check today.

98% cash and 2% PM physical holder as of today. May slightly increase PM holdings.

Thu, 10/11/2012 - 15:08 | 2878502 TWSceptic
TWSceptic's picture

It's the fiscal cliff stupid! Who wants to jump on a train that looks like it's heading towards a cliff? Bernanke has shot all ammo to get reappointed, now what?

Thu, 10/11/2012 - 15:11 | 2878517 AGuy
AGuy's picture

FWIW: Could be people expecting the Capital Gains to rise next year when the Bush tax cuts expire and optioning to cash out before the increase.



Thu, 10/11/2012 - 16:10 | 2878755 ebworthen
ebworthen's picture

Ding! Ding! Ding!


And...they need it for mortgage, medical bills, gas, food.

Thu, 10/11/2012 - 16:08 | 2878729 ebworthen
ebworthen's picture

Casino losing customers after spiking their drinks with ex-lax and charging 25% on $100 withdrawn from their ATM, but will increase to 40%50% soon.

Magnets under the roulette wheel, ugly card dealers with PhD's who skim chips, and the drinks are $5.99 each plus a mandatory 20% gratuity (servers are ugly too).

There are numerous pickpockets but they used to work at the casino so the security guards ignore them.  Are Mom and Grandma safe in there?  Hell no!

All you can eat buffet has a plate limit of 2 and you can only be seated for 20 minutes but it's all you can eat - hot dogs, macaroni and cheese, and stale marshmallows with decaf coffee (no sugar or cream).

Oh yeah, no smoking either.

"Customers" leaving.

Thu, 10/11/2012 - 17:24 | 2878941 barroter
barroter's picture

Buy stocks? Why? So I can be beaten by those who who personally rigged the game? 

Thu, 10/11/2012 - 21:07 | 2879358 El Hosel
El Hosel's picture

 You can't buy or short em, what else can you do.... Take your ball and go home, don't play their game.

 Put the "Financial Proffessionals" out of Business, let them earn money the old fashion way.

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