Equity Funds Have Largest Weekly Outflow In Over Two Years

Tyler Durden's picture

There is one major problem when the entire market is a rigged casino (by both the Fed and HFTs), favoring degenerate gamblers over traditional investors: at the first whiff of trouble everyone bails. Or as BofA politely puts it, "Typically flows follow returns and this week was no exception." In the past week, trouble whiffed, and the degenerate gamblers, loaded up to the gills with record margin debt hightailed it out of the casino, leading to the largest weekly equity fund outflow in over two years! Add some record leverage to the equity withdrawal, continued EM turbulence, ongoing Japanese deflation exports, oh and of course the ongoing Fed taper which has been solely responsible for all S&P gains since 666, and suddenly you have all the ingredients for a broad market crash.

More from BofA:

"... equity, high yield and EM bond funds all reported large outflows last week after the sharp selloff in risk assets driven by weakness in EM. At the same time munis – the asset class that benefits most from the rally in rates – had the first significant inflow (+$0.46bn) since May. The $12.02bn equity fund outflow was the largest weekly outflow in over two years. EM funds also saw a sizable $2.65bn outflow, driven by local currency funds – the largest since June. This outflow also reversed the slowdown in EM redemptions that we saw during the first three weeks of the year."


And charting the YTD fund flows across all asset classes:

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One And Only's picture


All in MyRA

TeamDepends's picture

Hmmm, we went to cash in our chips and there were no employees to be found anywhere?

Headbanger's picture




From Daneric's

new game's picture

chanel surfing, got parachute? nice soft landing. sleep like a baby tonite...


LawsofPhysics's picture

"All in MyRA" -

Trust me, if you have money in the system, you will buy government debt, oh yes, you will, whether you like it or not.

National Blessing's picture

Today is Bernanke's last day.  Gentle Ben is a sexy beast.  His man-tits shall be missed.

One And Only's picture

Shit. Off the lows. Victory for the bulls!!! Back into stocks!

NoDebt's picture

Where's the red arrow pointing back in time to the previous occurrance of the phenomenon?  

Without that red arrow, I'm as lost as a fat kid at a Herbalife convention.

Murf_DaSurf's picture



Hey, everyone is piling into the new MYyRAs

Rehab Willie's picture


One And Only's picture

Fuck. Sell stocks. Buy MyRA in Dong terms.

Dr. Engali's picture

I wonder if old Yeller is thinking FUCK YOU Bernank right about now.

Seasmoke's picture

No way. She is probably rubbing her button right now , getting off on this. 

mayhem_korner's picture



gracias, 'smoke.  Earliest I've vomited in the day since I don't know when...

Dr. Engali's picture

The Bernank threw a five year party then took his punch bowl and went home. Now old Yeller is going to take the heat.

Paper CRUSHer's picture

Doc,I'd appreciate if all the zero-ites here could come together one time and pledge allegiance by waving a final FU salute to 'ol Benny Boy today so i'm humbly requesting Tyler if he would grant us a thread for final goodbye from all of us and i mean all.

How about it Tyler?.........C'mon bro,not even for little 'ol me and Doc?

Sudden Debt's picture

you didn't watch the end of the movie he?...


hate to break it to ya...



that nice doggy...


mayhem_korner's picture



You bastard potato-shark - I was gonna watch that tonite!

SheepDog-One's picture

All piling in to buy bankrupt US Treas MyRape accounts for cushy retirement guanrantee! :D

Sudden Debt's picture

what's wrong with that?

You give them 100% of your savings...

they give you 3% back the first year (to collect in 30 years from now)

2% the second (while hyperinflation kicks into high gear)

and a pack of chewing gum for all the following years...


Spumoni's picture

Will that be Dickorette or juicyfroot?

Sudden Debt's picture



mayhem_korner's picture



What would the chart look like if adjusted for corporate buy backs (which will have to accelerate as Janet and Zero force the masses into Treasuries to keep yields down while they attempt to taper). 

BTW, what is Bill Gross smoking that he believes the Fed will taper to zero by November???

buzzsaw99's picture

broad market crash. LMFAO

Ness.'s picture

m.u.s.t.  d.e.f.e.n.d  1 0 2 !!

praps's picture

'and suddenly you have all the ingredients for a broad market crash'


Ans so we will have a huge rally.

AdvancingTime's picture

Most investors think that even if things go downhill fast that they will be smart enough to get out of the markets. After the debacle in 2008 where they saw the market do nasty and violent swings they learned a few things, this time they figure they will make the right moves before it is to late.

But what if it hits like the flash crash on steroids? We know that can't happen because circuit breakers have been put in place to arrest panic style moves, but imagine a market that falls, trade is halted, and the market simply does not reopen for days, or even weeks. The post below goes into detail on why this could happen.


Spumoni's picture

Yeah-those ten-second stops are really helpful - how else can all the sleeping eft's get woken up in time to trigger?

glossolalia's picture

It's a COLLAPSE!!!!!

LawsofPhysics's picture

My bad.  Kids going to college and it isn't a profit until you actually sell

(Selling to be outlawed in 3...2...1...)

buzzsaw99's picture

this whole fake volatility has been manufactured to help the squid and jpm's fixed income desks do the treasury note dump and pump. when selling umbrellas best to do a rain dance.

B.J. Worthy's picture

VIX is sporting a chubby (and so am I).

Spungo's picture

"But what if it hits like the flash crash on steroids?"
This can't happen. Flash crash implies that it goes down without any warning. This market has been fucking around, trading sideways, and wildly fluctuating all month. This isn't a flash. This is like seeing a brick wall 10 blocks away and refusing to slow down. This happened in 1929 and 1987 as well. 1929 had at least a month of rising and falling before the crash happened. People have plenty of time to get out, but they chose not to.

Sufiy's picture

Gold GLD has 2 weeks of inflows now:


Jim Rickards: The Macro View: Meet Janet Yellen, central planner 

 With the world's markets holding their breath about the FED's decision tonight it is very timely to follow Jim Rickards with his analysis on what to expect from Janet Yellen now. With Gold holding at the crucial breakout level now, it will be very important whether the recent turmoil in the emerging markets and sell off in the US markets will put the unease among the FED for Bernanke's clean exit despite of the growing misalliances in the markets.
  Gold market is showing the further signs of extreme levels of leverage in the Gold Fractional Reserve System and more evidence of the shortages in the physical Gold available for delivery. There are reports that JPMorgan Loses 44% of Gold Inventories in 4 Days.



orangegeek's picture

We may get another down turn (next week) before the correction process starts.




Lots of effort to stop the December 2013 low from getting taken out.

moneybots's picture

"Equity Funds Have Largest Weekly Outflow In Over Two Years"


Money moved off the sidelines, again.