The "Great Rotation" Of Retail Inflows Lasted A Total Of Seven Weeks
When a month ago we wrote "It's Deja Vu, All Over Again: This Time Is... Completely The Same" as the endless din over some non-existent "Great Rotation" had the TV anchors on the financial comedy channel giddy with excitement, we said one thing when we compared the current environment with its carbon copy observed back in 2011: "Fund Flows into equities were unstoppable. Yes - that was 7 consecutive weeks of major equity inflows into stocks... back in January 2011."
Moments ago ICI just released its latest weekly US equity mutual fund flow data for the week ended February 27. We can now officially end the 2013 version of the "great rotation" myth because we just got our first outflow, after how many weeks of inflows? That's right: seven. Just like in 2011.
Good to know that it wasn't retail who sent the DJIA to new all time highs.
Who could it be? Who could it possibly be?
Of course, the above simply means that Maria Bartiromo's favorite topic: "the pent up demand from all that cash on the sidelines" (which incidentally is going to buy Treasurys with the same fervor as any week in the past four years), will be back to the daily talking point rotation, at least until such time as the DJIA is back solidly below its 2007 highs.