This page has been archived and commenting is disabled.

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."

Visually:

And charting the YTD fund flows across all asset classes:

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/31/2014 - 09:21 | Link to Comment One And Only
One And Only's picture

SELL EVERYTHING

All in MyRA

Fri, 01/31/2014 - 09:29 | Link to Comment 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 | Link to Comment Headbanger
Headbanger's picture

STOP!..  HAMMER TIME!

LOOKS LIKE MAJOR SUPPORT IS ABOUT TO BE BROKEN!

http://3.bp.blogspot.com/-xebfeDBaCyA/UusAidFStyI/AAAAAAAAXqA/ZXFamO95Jl...

From Daneric's

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

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

disclosure:spectator

Fri, 01/31/2014 - 10:06 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment gafgroocK
gafgroocK's picture

 

 

Hey, everyone is piling into the new MYyRAs

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

SELL MORTIMER, SELL!!!!!!

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

Fuck. Sell stocks. Buy MyRA in Dong terms.

Sat, 02/01/2014 - 23:47 | Link to Comment TheReplacement
TheReplacement's picture

Long MyRA Dong?

Fri, 01/31/2014 - 09:28 | Link to Comment 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 | Link to Comment Seasmoke
Seasmoke's picture

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

Fri, 01/31/2014 - 09:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment TheReplacement
TheReplacement's picture

-1 for the visual.  Jerk.

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

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

....

hate to break it to ya...

...

yeller...

that nice doggy...

HE DIES AT THE END!! THE KID KILLS HIM WITH HIS GUN!!

Fri, 01/31/2014 - 09:40 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

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

Fri, 01/31/2014 - 09:28 | Link to Comment 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 | Link to Comment 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 | Link to Comment Spumoni
Spumoni's picture

Will that be Dickorette or juicyfroot?

Fri, 01/31/2014 - 09:31 | Link to Comment Sudden Debt
Sudden Debt's picture

EVERYBODY BUY GOVERNMENT BONDS!!

NO MATTER FROM WHICH COUNTRY!!

Fri, 01/31/2014 - 09:37 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

broad market crash. LMFAO

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

m.u.s.t.  d.e.f.e.n.d  1 0 2 !!

Fri, 01/31/2014 - 09:43 | Link to Comment 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 | Link to Comment 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.

http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html

Fri, 01/31/2014 - 09:47 | Link to Comment 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 | Link to Comment glossolalia
glossolalia's picture

It's a COLLAPSE!!!!!

Fri, 01/31/2014 - 10:02 | Link to Comment 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 | Link to Comment 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 | Link to Comment B.J. Worthy
B.J. Worthy's picture

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

Fri, 01/31/2014 - 10:25 | Link to Comment 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 | Link to Comment 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.

 

http://sufiy.blogspot.co.uk/2014/01/jim-rickards-macro-view-meet-janet.h...

Fri, 01/31/2014 - 11:14 | Link to Comment orangegeek
orangegeek's picture

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

 

http://bullandbearmash.com/chart/sp500-hourly-endures-wild-swings-close-...

 

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

Fri, 01/31/2014 - 14:20 | Link to Comment moneybots
moneybots's picture

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

 

Money moved off the sidelines, again.

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