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!

http://politicalvelcraft.org/2012/10/09/iceland-dismantles-the-corrupt-a...

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 - http://bit.ly/gFWVSm

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 Rocky......watch 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?

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