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"Great Rotation" Does A 360 As US Equity Funds Post Biggest Weekly Outflow Of 2013
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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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?
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.
Bernanke's printing us to a electronless society. Cash only I say.
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
pssst, 85b is not enuf.
look around-there is never enuf
the human delema...
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.
best post 2013
and spend some time with them too:)
just did last weekend
a fucking riot, smiles galore!!!!!!!!!!!!!!
felt 50 years younger and laughed like a kid.
plus was able to share some wisdom with someone that actually listened...
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
Are you ready Gordo?
http://www.youtube.com/watch?v=uWBVfGIaIQU
I just buy PM's because I like to collect coins...
so... there are also other reasons to buy them?
not that I can think of - in my case I call it an addiction
The best of both worlds is to hold your cash in nickels. Seriously, people, nickels.
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.
This remains the Age of Debt, not of capital. Bonds aren't going to collapse for a long, long time.
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...
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.
I hear you. I have a sick feeling in my stomach today. I think it gets ugly from here.
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.
Those who don't believe in ghosts, are the ones most afraid of them.
"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.
Even sports writers get it?
http://www.dailymail.co.uk/debate/article-2286116/Its-high-time-lot-downgraded.html
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.
360 or 180?
180.....and run like hell.
Cleanup on aisle 5 from hell come tomorrow.....should be fun.
DOW futures 8 hour and daily chart still shows megaphone wedge pattern so a big move awaits . . .
http://trader618.com
So what's the password? Are you a click farmer? Shilling your website for ZH traffic?
PROSECUTE THE WAR CRIMINALS!
Paging Tyler Durden. Tyler Durden, there's a spammer in need of a ERASE DELETE KICK OUT treatment.
Who needs money?
The Great Rotation, aka being caught in one giant funnel flow leading you know where.
Ever try to unflush a toilet?
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.
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-...
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"
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.
Signs of markets tops are everywhere.
world economic markets slump
the headline
my take
yea, hello!
money chasing best returns via CB
the house is winning
been to vegas lately?
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?
money chasing best returns - for now.
money chasing ass, boobs and pussy -always been and will be.
lived in vegas for one year-confirmed true, add some booze to the mix...
all good, my friend!
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!
da city of misfits...
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.
don't forget the Gulf of Mexico...
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.
Your tax dollars at work.....thank you for your support.
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!
In other news: your Prime Minister is gay, Sudden Debt ;-) but yes, I agree with you, being independent in europe is not that easy
did you find that out the hard way? :)
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?
It was actually 47% if you only count the tax paying part of Belgium... Flanders :)
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
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!!
oh, in other news: Poland's goverment still plans to join the eurozone
I know :) That's just totally unbelievable he?
WHO IN THEIR RIGHT M.... poland...
home of very beautiful girls, mind you - not that your wife would approve you sampling the offers ;-)
I concider her on a NEED TO KNOW BASIS concerning that :)
Where you're actually from Ghordius?
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
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... :)
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?
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.
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.
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
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.
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?
It's weird how whenever I do something, everyone else does it too. We must all be brainwashed.
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?
I wonder if Uncle Phil is still holding on?
Anyone with a brain in their head is preparing for a black-market economy.