Equity Outflows Surge As Stocks Limp To Record High

Tyler Durden's picture

After the quietest 8 days in S&P history since 1964...


The broad market index managed to limp quietly to a new record close on Friday after a very mixed payrolls print.



However, despite the volumeless spike to record highs, it appears the week's dismal data..

As Bloomberg notes, to say the S&P 500 Index’s slog to a record this week failed to ignite animal spirits on Wall Street would be an understatement.

Appetite for U.S. equities evaporated even as prices inched higher, with price gains culminating in a Friday afternoon advance that left the benchmark 3 points above its March 1 close. Unimpressed, investors yanked more money from the biggest exchange-traded fund tracking the measure than any time since the presidential election.

Despite the gains, traders withdrew over $7.8 billion from the SPDR S&P 500 ETF this week, the biggest weekly outflow since January 2016 as cash flowed from stocks to fixed income. During the same period, bond funds tracked by EPFR Global took in $9.7 billion, according to a Bank of America Merrill Lynch note citing the firm’s data.

“People have shifted so quickly into bonds, and they’re probably doing it by selling equities,” Alex Bellefleur, head of global macro research and strategy at Pavilion Global Markets in Montreal, said by phone. “Maybe people are looking at protection, given stocks are at all-time highs.”

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Arnold's picture

Ya know how the water recedes from the shore, showing sea bottom that has never been seen before, shipwrecks and pirate gold?

Then, the Mother of all Tsunamis hit?

It's kinda like that.

max2205's picture

SNB will buy the market Monday 

Arnold's picture

I'm thinking the quality of Swiss manufactured fiat must be very high.

chubbyjjfong's picture

The CB's keep buying all this shit, hence it goes up, same as it ever was. Nothing is changing here!!!!

Arnold's picture

They aren't giving me jack shit for my old snow blower.

I know that they want to own it all.

garypaul's picture

Exactly. I don't even know why ZH prints these bullshit stories.

DingleBarryObummer's picture

May 5

"Great jobs report today - It is all beginning to work!"

  Trump says BLS is BS: https://www.washingtonpost.com/news/fact-checker/wp/2016/01/20/trumps-cl...?"
  “They have this phony number, 5.2 percent. Everybody that quits looking for a job is considered statistically a person that has a job. It’s a phony number."
fbazzrea's picture

Maybe people are looking at protection, given stocks are at all-time highs.”

you think?? another Nobel laureate...



Lonesome Crow's picture

<--- Sell in May,go away

<--- Don't sell a dull market

Arnold's picture

A dull market to take gains....
Just sayin.
A lot better than selling into a "market pullback".

quesnay's picture

Outflows from funds to where? I dislike these articles that talk about money entering or leaving the stock market. For the most part, the number of stocks do not drastically change (yes I know there are IPOs, bankruptcy and stock buybacks and new issuance which is why I say 'for the most part').  If you sell a stock, someone else is buying it. So, in general, there is no such thing as 'outflows' or 'inflows', there is only flow from one person or institution to another person or institution. So if outflows are from ETFs, there where are the inflows? Different funds? Individuals? Companies? The fed? Someone has to buy on the other end for things to balance out.

_RRR_'s picture

well, if no one the banksters will buy. You know, the guys with the deep self-refilling tax-money pockets

Dilluminati's picture

uhhh duh sell high, buy bonds, then buy stocks low, sell high, buy bonds

rinse repeat.. oh better yet buy and hold


buzzsaw99's picture

as the fly used to say: "never short a dull market".

Arnold's picture

Now what do they say, Obi buzz Kenobi?
Buy all the things?