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"Great Rotation" Does A 360 As US Equity Funds Post Biggest Weekly Outflow Of 2013

Tyler Durden's picture




 

The "great rotation" illusion may have ended just as rapidly as it arrived. Bank of America reports that in the past week, "commodity funds reported their largest historical weekly outflow, in dollar terms, of -$3.2bn this week and US equity funds reported an outflow of -$4.1bn this week, which is their largest weekly outflow this year." So much for anyone rotating anywhere. And while we await for the delayed ICI to confirm this data, we can only remind readers that this is precisely the same inflow followed by outflow that was seen in early 2011, which was then followed by nearly two straight years of relentless and persistent outflows.  Oh well - better luck in 2014.

Full BofA note:

US loan funds reported their 2nd largest weekly inflow in history this week (+$1.3bn) after a record +$1.5bn inflow just two weeks ago. Interestingly, the top 5 largest inflows into US loan funds in history, in dollar terms, have all come over the past 5 weeks. Strong inflows into loan funds, which began during the last quarter of 2012, are the result of demand for the asset class which offers investors both higher yields, compared to the broader fixed income market, and protection from rising interest rates. Year-to-date inflows into US loan funds have reached +15.5bn (+12.5%), far exceeding inflows into any of the other asset classes we track. Alternatively, US HY funds have reported outflows in each of the past 5 weeks, including a -$211mn outflow this week. Inflows into US IG funds were a solid +$1.7bn this week, leaving YTD inflows at +23.8bn (+1.4%). EM local currency bond funds reported another very strong inflow of +$983mn this week and have seen total net assets grow by +$9.9bn (+8.1%) YTD. Inflows have been less impressive into EM external debt funds so far this year, with YTD AUM growth of just +$3.1bn (+2.3%) after including this week’s -$398mn outflow. In other asset classes, commodity funds reported their largest historical weekly outflow, in dollar terms, of -$3.2bn this week and US equity funds reported an outflow of -$4.1bn this week, which is their largest weekly outflow this year.

 

 

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Fri, 03/01/2013 - 07:08 | 3289420 HD
HD's picture

Will 85 billion a month really enough to hold this market together?

Look at Japan  - stocks soaring at the same time people can't afford food or to turn on their lights - what's the point in printing moar at this stage?

Fri, 03/01/2013 - 07:15 | 3289429 LawsofPhysics
LawsofPhysics's picture

Exactly what I was thinking. Ben was not monetizing 85 billion per month in 2011. Personally I am seeing a lot more cash and PM deals between folks already, all tax free.

Fri, 03/01/2013 - 07:38 | 3289442 q99x2
q99x2's picture

Bernanke's printing us to a electronless society. Cash only I say.

Fri, 03/01/2013 - 07:54 | 3289454 new game
new game's picture

somebody said it is a relic and also said cash is king

offhand i observe this to be true for the moment

history says otherwise though...

play it both ways

50/50 gold/cash

sleeping ok

ZZZZZZZZZZZZZZ

Fri, 03/01/2013 - 07:56 | 3289460 new game
new game's picture

pssst, 85b is not enuf.

look around-there is never enuf

the human delema...

Fri, 03/01/2013 - 08:12 | 3289470 GetZeeGold
GetZeeGold's picture

 

 

They're using your grandkids money to smash PMs.....take the time to buy some PMs for your grandkids,

 

It will be your legacy.....and they will thank you.

 

Send my best to Bob Woodward......I hope he survives today.

Fri, 03/01/2013 - 08:13 | 3289476 new game
new game's picture

best post 2013

and spend some time with them too:)

just did last weekend

a fucking riot, smiles galore!!!!!!!!!!!!!!

Fri, 03/01/2013 - 08:20 | 3289489 new game
new game's picture

felt 50 years younger and laughed like a kid.

plus was able to share some wisdom with someone that actually listened...

Fri, 03/01/2013 - 08:19 | 3289484 Ghordius
Ghordius's picture

buying PMs for your grand-grand-children is only second to having PMs from your great-great-parents, a late friend of mine used to say

Fri, 03/01/2013 - 08:20 | 3289490 GetZeeGold
GetZeeGold's picture

 

 

Are you ready Gordo?

http://www.youtube.com/watch?v=uWBVfGIaIQU

Fri, 03/01/2013 - 09:02 | 3289562 Sudden Debt
Sudden Debt's picture

I just buy PM's because I like to collect coins...

so... there are also other reasons to buy them?

Fri, 03/01/2013 - 09:43 | 3289652 Ghordius
Ghordius's picture

not that I can think of - in my case I call it an addiction

Fri, 03/01/2013 - 12:15 | 3290326 tarsubil
tarsubil's picture

The best of both worlds is to hold your cash in nickels. Seriously, people, nickels.

Fri, 03/01/2013 - 08:48 | 3289536 rogeliokh
rogeliokh's picture

Rotation to where?

Market UP = Gold down

Market Down=Gold down

Risk ON= Gold down

Risk OFF= Gold down.

Silver losing $0.50 per day, on regular basis.

I cannot beleive this Sh*t... F*cking Banksters!

Unless Market tank 200+ points we probably going to hit 1550 on Gold today ones

8:20 AM takedown takes place again.

Fri, 03/01/2013 - 09:29 | 3289607 Go Tribe
Go Tribe's picture

This remains the Age of Debt, not of capital. Bonds aren't going to collapse for a long, long time.

Fri, 03/01/2013 - 07:18 | 3289432 fonzannoon
fonzannoon's picture

I'm looking at Japan too and wondering if I better go all in on this market. It seems even ZH kind of takes notice that it's only the people in the Nikkei that will able to keep the lights turned on...

Fri, 03/01/2013 - 07:42 | 3289445 HD
HD's picture

My problem is I just can't bring myself to give in to the manipulation even though the market is screaming at me to do so. Whatever can't be sustained won't be - I've come to far and fought too long to give in at these bloated, artificial highs.

I have little doubt Ben will continue to kick me in the ribs till one of us collapses.

Fri, 03/01/2013 - 08:13 | 3289475 fonzannoon
fonzannoon's picture

I hear you. I have a sick feeling in my stomach today. I think it gets ugly from here.

Fri, 03/01/2013 - 09:08 | 3289573 BandGap
BandGap's picture

Classic. It has become a game, or a war. Can you make it across the field and back with some stuff before the lights come on and you are shot down. I guess it appeals to the gambler in all of us. I haven't traded stocks in three years.

Fri, 03/01/2013 - 09:11 | 3289576 negative rates
negative rates's picture

Those who don't believe in ghosts, are the ones most afraid of them.

Fri, 03/01/2013 - 10:05 | 3289711 LawsofPhysics
LawsofPhysics's picture

"only the people in the Nikkei that will able to keep the lights turned on..."

------------------------------------------

Only if they are planning on selling shares at some point in the future.  They will need to survive between now and then.  You of all people should know fonzannoon, stocks are a far cry from the real economy.  Besides selling will soon be illegal.  One of my workers asked me what I was doing with a late model (1995) pick-up that I had sitting at a warhouse.  The truck had not been driven in some time.  Long since paid off (I have always pay cash) as I purchased it in 1998 for $6,500.  He offered $2,500 cash, so I said sure.  It needs new tires and a new clutch in the not so distant future and I let him know, he said fine and drove away happy.  Ben Bernanke will be known as the greatest thing to happen to the balck markets since Stalin.

Fri, 03/01/2013 - 07:37 | 3289441 Shevva
Shevva's picture

And as it's Friday and I'm off down the pub (sorry guys over the pond reading this that just started work).

Heres my Friday Funny http://www.guardian.co.uk/commentisfree/2013/feb/28/feminists-funny-angry

Just remember if you don't understand cis-woman follow the link.

Fri, 03/01/2013 - 07:27 | 3289436 gratefultraveller
gratefultraveller's picture

360 or 180?

Fri, 03/01/2013 - 08:51 | 3289522 GetZeeGold
GetZeeGold's picture

 

 

180.....and run like hell.

 

Cleanup on aisle 5 from hell come tomorrow.....should be fun.

Fri, 03/01/2013 - 07:31 | 3289437 Grand Supercycle
Grand Supercycle's picture

DOW futures 8 hour and daily chart still shows megaphone wedge pattern so a big move awaits . . .

http://trader618.com

Fri, 03/01/2013 - 07:53 | 3289453 Acidtest Dummy
Acidtest Dummy's picture

So what's the password? Are you a click farmer? Shilling your website for ZH traffic?

PROSECUTE THE WAR CRIMINALS!

Fri, 03/01/2013 - 08:24 | 3289501 Sudden Debt
Sudden Debt's picture

Paging Tyler Durden. Tyler Durden, there's a spammer in need of a ERASE DELETE KICK OUT treatment.

Fri, 03/01/2013 - 07:34 | 3289439 negative rates
negative rates's picture

Who needs money?

Fri, 03/01/2013 - 07:40 | 3289444 Downtoolong
Downtoolong's picture

The Great Rotation, aka being caught in one giant funnel flow leading you know where.

Ever try to unflush a toilet?

Fri, 03/01/2013 - 08:28 | 3289508 blindfaith
blindfaith's picture

 

This is what is known as the TRICKLE DOWN THEROY.  See ol'd Benny has taken this to a new level.  He puts money into the stock market so the average joe can take it back out to pay the cable, food, RE, doctor, post office and all the other bills since his damn job doesn't cut the mustard anymore.  That is trickle down.

Fri, 03/01/2013 - 07:50 | 3289451 Temporalist
Temporalist's picture

Regarding the great equity bull:

Druckenmiller Sees Storm Worse Than ’08 as Seniors Bankrupt Kids

"The Federal Reserve’s decision to hold interest rates near zero and buy $85 billion of assets a month is pumping up the stock market, all with the hope that rich people will spend those gains, and that money will trickle down to the rest of the country.

While stocks may continue to rise for a while because companies are buying back shares and retail investors are coming back to the market in search of returns, the gains probably won’t last, Druckenmiller said.

“The chances of this being a new bull market like 1982 aren’t high because we’re not attacking the crux of the problem, which is too much leverage and too much debt,” he said. “I don’t know the timing of when the markets will respond to this, but it will happen.”"

http://www.bloomberg.com/news/2013-03-01/druckenmiller-sees-storm-worse-...

Fri, 03/01/2013 - 08:01 | 3289467 new game
new game's picture

and while this evolves, batten down the hatches-less is more

number 8.

"not realizing you are safer with nothing, than a backload of burdens"

 

Fri, 03/01/2013 - 07:57 | 3289462 overmedicatedun...
overmedicatedundersexed's picture

had conversation with an small investor last night..TNA on margin balls to the wall he is going to be rich, when gop CAVES and wall street hits multiyear highs. He said you cannot lose the fed is buying the market. I thought I was in the movie trading places and winthorp had set the price..and yet maybe he is right.

Fri, 03/01/2013 - 08:10 | 3289469 Everybodys All ...
Everybodys All American's picture

Signs of markets tops are everywhere.

Fri, 03/01/2013 - 08:10 | 3289472 new game
new game's picture

world economic markets slump

the headline

my take

yea, hello!

money chasing best returns via CB

the house is winning

been to vegas lately?

 

Fri, 03/01/2013 - 08:11 | 3289474 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

Well - okay, but *all* commodities?  [too lazy to look it up this early]

Why on earth would anyone get out of wheat, gold, or oil who's holding mid or long term?  I guess I don't get going into debt based funds for yield when it's patently obvious that the purchasing power of the dollar is declining, and very probable that this will accelerate as the Fed continues working its magic, and as all that secret money sent to Europe starts coming back to buy real/hard assets.

What am I missing?  Seriously...  is this people just waiting for commodity prices to bottom, or what?

Fri, 03/01/2013 - 08:16 | 3289483 new game
new game's picture

money chasing best returns - for now.

Fri, 03/01/2013 - 08:19 | 3289488 Sudden Debt
Sudden Debt's picture

money chasing ass, boobs and pussy -always been and will be.

Fri, 03/01/2013 - 08:23 | 3289498 new game
new game's picture

lived in vegas for one year-confirmed true, add some booze to the mix...

all good, my friend!

Fri, 03/01/2013 - 08:28 | 3289507 Sudden Debt
Sudden Debt's picture

It's what's for breakfast, lunch and dinner!

I'm going to Las Vegas for a week with some buddies of mine. I love that city!

Fri, 03/01/2013 - 08:32 | 3289515 new game
new game's picture

da city of misfits...

Fri, 03/01/2013 - 09:09 | 3289575 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

Ah, yeah - of course; I've just become so skeptical of everything, I tend to forget there's a short term...   this could all keep chugging along for years, though, I suppose.  I'm sure they can add several trillion more to the official and unofficial debt, in no small part because Krugman and his cohorts will keep insisting that, no matter the trillions the banks are just sitting on for the moment, continuing to print-and-spend is always, always a good thing when "the economy" is in a recession.

I guess I'd short seafood companies based in the Pacific, but sadly, all my money is tied up in debt.

Fri, 03/01/2013 - 09:40 | 3289644 Terminus C
Terminus C's picture

don't forget the Gulf of Mexico...

Fri, 03/01/2013 - 08:19 | 3289486 Sudden Debt
Sudden Debt's picture

they're getting out of commodities because there's always a change that the derivative markets explode and than you may have 500 containerships full of grain on paper, but you might end starving because none is actually there.

Fri, 03/01/2013 - 08:48 | 3289539 GetZeeGold
GetZeeGold's picture

 

 

Your tax dollars at work.....thank you for your support.

Fri, 03/01/2013 - 08:15 | 3289479 Sudden Debt
Sudden Debt's picture

In other news... Europe is posting it's 9th consecutive all time record high month of number of bankruptcies.

WAY TO GO LITTLE INDEPENDENT GUY!!!

and as in Europe, independents are always considered rich, NO SAFETY NET FOR YOU!

Fri, 03/01/2013 - 08:23 | 3289493 Ghordius
Ghordius's picture

In other news: your Prime Minister is gay, Sudden Debt ;-) but yes, I agree with you, being independent in europe is not that easy

Fri, 03/01/2013 - 08:25 | 3289503 Sudden Debt
Sudden Debt's picture

did you find that out the hard way? :)

Fri, 03/01/2013 - 08:30 | 3289511 Ghordius
Ghordius's picture

being independent, yes. about your PM, thankfully not. But I'm still a wee pissed about your remark of your party "winning the election"

less than 20% of the popular vote? come on, all the rest together has 80%, and they obviously mix better than your guys

 

so when is Flanders going to be independent? is the gay fellow following up on his promises? 2016?

Fri, 03/01/2013 - 08:34 | 3289517 Sudden Debt
Sudden Debt's picture

It was actually 47% if you only count the tax paying part of Belgium... Flanders :)

 

Fri, 03/01/2013 - 08:41 | 3289531 Ghordius
Ghordius's picture

well, I could then use the same whacked math that is being used in financial commentaries about Italy and conclude that 53% of Flanders wants to stay in Belgium, couldn't I?

Sudden Debt, your country needs a bit faster politics - or Scotland and Catalonia will beat you in the race

Fri, 03/01/2013 - 09:01 | 3289559 Sudden Debt
Sudden Debt's picture

Oh, the country doesn't really want to split.

We just don't like to pay taxes and would like THE FUCKING SOCIALIST PART TO PAY FOR THEIR OWN COOKIES!!

Fri, 03/01/2013 - 08:24 | 3289500 Ghordius
Ghordius's picture

oh, in other news: Poland's goverment still plans to join the eurozone

Fri, 03/01/2013 - 08:27 | 3289505 Sudden Debt
Sudden Debt's picture

I know :) That's just totally unbelievable he?

WHO IN THEIR RIGHT M.... poland...

Fri, 03/01/2013 - 08:32 | 3289514 Ghordius
Ghordius's picture

home of very beautiful girls, mind you - not that your wife would approve you sampling the offers ;-)

Fri, 03/01/2013 - 08:36 | 3289523 Sudden Debt
Sudden Debt's picture

I concider her on a NEED TO KNOW BASIS concerning that :)

Where you're actually from Ghordius?

 

Fri, 03/01/2013 - 08:51 | 3289546 Ghordius
Ghordius's picture

I have a very mixed european ancestry that includes people coming from Bruges and Ghent

if my family still had it's great palaces and holdings you'd call me an aristo

but I feel at home in Austria, Italy, Germany and I worked in Greece, Turkey, Spain and Scotland, while I visit often Switzerland for work

to be frank, only been twice in Flanders and once in Brussels

Need to know is good policy, btw

Fri, 03/01/2013 - 09:05 | 3289567 Sudden Debt
Sudden Debt's picture

Well, IF YOU HAVE ROOTS IN GHENT, YOU CAN'T BE ALL THAT BAD AFTER ALL!!

According to the national archives, my family roots go to 1450's in Ghent. So maybe our ancesters kicked each other in the nuts during a bar fight back than... who knows... :)

 

Fri, 03/01/2013 - 09:25 | 3289583 Ghordius
Ghordius's picture

lol - 1450? possibly. one ancestor in Ghent later was one of the "stroppendrager" of 1539, the other a goon of the emperor forcing the noose on the neck of the unwilling taxpayers

Ghenters were never willing and forthcoming in the business of paying taxes, eh?

Fri, 03/01/2013 - 18:36 | 3291903 Sudden Debt
Sudden Debt's picture

nop they never where :)
My father is also a steoopendrager in the walk!
If you know that, than your family was also part of the guild.

Send me a mail, I can lookup your ancestors if you want.
The databases go real far for people from gent.
and if they where from a guild that should easely go to through middle ages as these records have all be digitised.

Fri, 03/01/2013 - 09:13 | 3289579 ekm
ekm's picture

Let me re-post this again cocerning "global data":

 

Here is the rule of thumb to get a recession100% correct all the time:

 

For any period of 6 MONTHS of longer:

 

- Crude oil at $40 = Growth

 

- Crude oil at $70 = Stall

 

- Crude oil at $90 = Recession

 

If crude oil stays above $90 for longer than 1 year, it's a guranteed depression, since supply lines get broken.

That's where we are now, hence 47 million in food stamps and 50% of population receiving some kinds of gov subsidy. Supply lines are broken due to lack of energy.

Fri, 03/01/2013 - 09:29 | 3289606 gookempucky
gookempucky's picture

03-01-2013-----This month's 3.8 percent price drop has been accompanied by an outflow of nearly 70 tonnes from the GLD fund, accounting for more than 5 percent of its total holdings.

Top holders GLD

 

http://www.j3sg.com/Reports/Stock-Insider/generate-Institution.php?ticke...

BAC action up until 02-13-2013

Fri, 03/01/2013 - 09:30 | 3289610 Lewshine
Lewshine's picture

BLAH BLAH BLAH....All I know is today, around 10:00 am eastern time, all the way into the market close - Dow will break through to all time highs, based entirely on an algo ramp fueled by uncle Ben - A mortal(weekend headline) lock!!!

On open, buying ITM weekly Spy calls - A bus load!! Ben always works longer hours on Friday's.

Fri, 03/01/2013 - 09:38 | 3289634 ekm
ekm's picture

The idiots in power are giving zero interest to the savers, hence the savers are obligated to protect the principal, since the principal is producing zero income for them.

 

How do you protect the principal?

Answer: Get the fuck out of stocks and into cash

 

Why is this so difficult to understand?

Fri, 03/01/2013 - 09:53 | 3289689 Lost Wages
Lost Wages's picture

It's weird how whenever I do something, everyone else does it too. We must all be brainwashed.

Fri, 03/01/2013 - 10:44 | 3289895 ebworthen
ebworthen's picture

People are cashing out to pay bills.

The 2012 Holiday bills are due now, and the tax hit on paychecks, and the crappy economy.

Apple down almost 2% as of 9:45 a.m., to $433, can you believe it? 

Where are all the "AAPL to $1,000" geniuses on the MSM?

Fri, 03/01/2013 - 13:00 | 3290631 SKY85hawk
SKY85hawk's picture

I wonder if Uncle Phil is still holding on?

 

Fri, 03/01/2013 - 11:13 | 3290030 Lordflin
Lordflin's picture

Anyone with a brain in their head is preparing for a black-market economy.

Do NOT follow this link or you will be banned from the site!