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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Fri, 01/31/2014 - 09:21 | 4387382 One And Only
One And Only's picture


All in MyRA

Fri, 01/31/2014 - 09:29 | 4387411 TeamDepends
TeamDepends's picture

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

Fri, 01/31/2014 - 09:37 | 4387412 Headbanger
Headbanger's picture




From Daneric's

Fri, 01/31/2014 - 09:57 | 4387478 new game
new game's picture

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


Fri, 01/31/2014 - 10:06 | 4387524 LawsofPhysics
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.

Fri, 01/31/2014 - 10:34 | 4387671 National Blessing
National Blessing's picture

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

Fri, 01/31/2014 - 09:25 | 4387393 One And Only
One And Only's picture

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

Fri, 01/31/2014 - 09:25 | 4387394 NoDebt
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.

Fri, 01/31/2014 - 09:26 | 4387397 Murf_DaSurf
Murf_DaSurf's picture



Hey, everyone is piling into the new MYyRAs

Fri, 01/31/2014 - 09:27 | 4387399 Rehab Willie
Rehab Willie's picture


Fri, 01/31/2014 - 09:26 | 4387401 One And Only
One And Only's picture

Fuck. Sell stocks. Buy MyRA in Dong terms.

Sat, 02/01/2014 - 23:47 | 4392779 TheReplacement
TheReplacement's picture

Long MyRA Dong?

Fri, 01/31/2014 - 09:28 | 4387402 Dr. Engali
Dr. Engali's picture

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

Fri, 01/31/2014 - 09:32 | 4387419 Seasmoke
Seasmoke's picture

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

Fri, 01/31/2014 - 09:40 | 4387432 mayhem_korner
mayhem_korner's picture



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

Fri, 01/31/2014 - 09:40 | 4387434 Dr. Engali
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.

Fri, 01/31/2014 - 10:00 | 4387504 Paper CRUSHer
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?

Sat, 02/01/2014 - 23:47 | 4392780 TheReplacement
TheReplacement's picture

-1 for the visual.  Jerk.

Fri, 01/31/2014 - 09:37 | 4387430 Sudden Debt
Sudden Debt's picture

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


hate to break it to ya...



that nice doggy...


Fri, 01/31/2014 - 09:40 | 4387437 mayhem_korner
mayhem_korner's picture



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

Fri, 01/31/2014 - 09:28 | 4387403 SheepDog-One
SheepDog-One's picture

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

Fri, 01/31/2014 - 09:34 | 4387421 Sudden Debt
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...


Fri, 01/31/2014 - 09:44 | 4387446 Spumoni
Spumoni's picture

Will that be Dickorette or juicyfroot?

Fri, 01/31/2014 - 09:31 | 4387415 Sudden Debt
Sudden Debt's picture



Fri, 01/31/2014 - 09:37 | 4387425 mayhem_korner
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???

Fri, 01/31/2014 - 09:35 | 4387428 buzzsaw99
buzzsaw99's picture

broad market crash. LMFAO

Fri, 01/31/2014 - 09:41 | 4387439 Ness.
Ness.'s picture

m.u.s.t.  d.e.f.e.n.d  1 0 2 !!

Fri, 01/31/2014 - 09:43 | 4387440 praps
praps's picture

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


Ans so we will have a huge rally.

Fri, 01/31/2014 - 09:45 | 4387444 AdvancingTime
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.


Fri, 01/31/2014 - 09:47 | 4387448 Spumoni
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?

Fri, 01/31/2014 - 09:58 | 4387492 glossolalia
glossolalia's picture

It's a COLLAPSE!!!!!

Fri, 01/31/2014 - 10:02 | 4387509 LawsofPhysics
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...)

Fri, 01/31/2014 - 10:11 | 4387547 buzzsaw99
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.

Fri, 01/31/2014 - 10:21 | 4387597 B.J. Worthy
B.J. Worthy's picture

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

Fri, 01/31/2014 - 10:25 | 4387623 Spungo
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.

Fri, 01/31/2014 - 10:27 | 4387638 Sufiy
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.



Fri, 01/31/2014 - 11:14 | 4387815 orangegeek
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.

Fri, 01/31/2014 - 14:20 | 4388642 moneybots
moneybots's picture

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


Money moved off the sidelines, again.

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