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Retail Exodus From Stocks Continues: Another $3.6 Billion Pulled Out Last week

Tyler Durden's picture


There was a time when retail stock outflows were considered a bullish catalyst: after all, retail was always considered the dumb money (not "two and twenty" hedge funds which continue to underperform the stock market, and have done so for the past five years), and would pull money at the bottom and add money at the top. This is no longer the case for the simple reason that while persistent outflows from domestic equity funds continue (and as the recent shuttering of levered ETFs by Direxion shows the infatuation with synthetic mutual fund replacements is now over), for the inverse to be true there have to be inflows, which are now non-existent. In the past two years, or 106 weeks of market data, there here been 17 weeks of inflows, or 16% of the total, amounting to $31 billion. The remainder? Outflows for a total of $300 billion. In the 32 weeks of YTD 2012 money flows, there have been 5 weeks of inflows for a total of $3.6 billion (which was also equal to the outflow in the last week alone) none of which coincided with market tops, and in fact the biggest outflows occurred just as the market hit interim highs. The most recent inflow, as tiny as it may have been, curious occurred during the May lows, proving retail is if anything, the smart money now. In other words, those looking for hints about the market based on retail flows are advised to look elsewhere. What this data does show is that no matter what happens in the stock market, the outflows will persist and are unlikely to reverse direction. Because if the S&P at fresh 2012 (and multi-year) highs is unable to draw retail out of hibernation, nothing will. Where is the money flowing? Why into fixed income of course, proving that as far as the now extinct investor class is concerned, return of capital is the only thing that matters, while HFTs and prop trading desks can fight over all the return on capital scraps provided courtesy of the Chairman. Curious where the volume has gone? Now you know.


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Thu, 08/16/2012 - 14:05 | 2711354 diogeneslaertius
diogeneslaertius's picture

no production, no consumption, and infinity fraud debt

western world gdp non existent

cooincidence theory

Thu, 08/16/2012 - 14:08 | 2711371 camaro68ss
camaro68ss's picture

The RATS are jumping ship....

Thu, 08/16/2012 - 14:14 | 2711409 malikai
malikai's picture

When retail is gone, we're clear up to 36,000.

Thu, 08/16/2012 - 15:18 | 2711768 zaphod
zaphod's picture

If retail is selling stocks to buy bonds or MM funds, then the muppets are going to get killed by this trade. 

Hope some muppets are buying real assets in whatever form they prefer.

Thu, 08/16/2012 - 15:44 | 2711888 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Retail = Muppets

Thu, 08/16/2012 - 15:30 | 2711818 gckings19
gckings19's picture

I think retail is the smart money now....they have learned to sell rallies and buy the dips.  the mutual funds and hedge funds are all momentum chasers.......and get whipsawed in these markets.   there are only a very few that really know what they are doing. 

Thu, 08/16/2012 - 15:47 | 2711904 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Or boomers are taking their RMDs (if not more) and buying beamers and benzies to drive to their beach hotel for their long awaited first retirement vacation.  Then they will come back and work on their garden, maybe they will go to home depot and start to work on doing their own remodeling.

This is what matters in life - how cool do you look when you die - because this is how you will be judged in the afterlife; did you die driving a porchse while wearing nikes?  If you didn't, ain't no way you're getting into heaven!

Thu, 08/16/2012 - 23:14 | 2713153 merizobeach
merizobeach's picture

"boomers are taking their RMDs"  Before I ever heard Obama's name, I said that the next president would inherit a perfect storm of economic collapse starting in 2010.  I based my assertion on three primary factors: 30 million or so boomers scheduled to retire in 2010-2015 would dramatically reduce income tax revenues because those workers are relatively high income earners compared to those entering the workforce; the retirees will want to secure their savings, thus removing capital from riskier investments, like stocks, which would crush the market and corporate capitalization, further reducing government tax revenues; and finally the revenue from boomers' income would be replaced by outlays toward their entitlement programs.  All of this, I asserted, would force government into unprecedented debt levels with ever-increasing pace; it then followed that the interest payable on the debt would eat up increasing and unsustainable amounts of the expenditure pie graph.  Actually, I've been asserting all of this since the late '90s, and today, it seems the greatest flaw in my reasoning was only to not anticipate ZIRP; most of those other factors seem to be progressing as was easily foreseeable, although the market is levitating despite the outflows?

Thu, 08/16/2012 - 16:02 | 2711983 malikai
malikai's picture

History is very clear when it comes to retail.

Thu, 08/16/2012 - 14:34 | 2711515 The trend is yo...
The trend is your friend's picture

There are blackjacks being given out at every table and the sheep is still leaving the casino.  I can't wait til institutions start cannibalizing each other.  It'll be fun watching them

" a duke and duke has been here since the exchange was founded, we own it it's ours....get the brokers back in here turn the machines back on turn the machines back on....."

Trading places

Thu, 08/16/2012 - 16:47 | 2712153 mac768
mac768's picture

no production, no consumption, the new retailers are now the central banks

this is where the hopium is right now and the algos follow like lemmings until all things fall apart like a house of cards

Thu, 08/16/2012 - 21:17 | 2712890 philipat
philipat's picture

Retail is about to get the remaining wealth destroyed in fixed income as rates rise. Most of the retail money is going into fixed income FUNDS wgich mark to market daily. One big scare and everyone wants out and the funds are forced to liquidate at market. The retail investor does not in general understand that fixed income FUNDS are no way to guarantee the return OF capital. Only buying Bonds directly and being prepared to hold until maturity will do that.

Thu, 08/16/2012 - 14:07 | 2711363 hugovanderbubble
hugovanderbubble's picture

To be honest that chart has to be complemented with 




Thu, 08/16/2012 - 14:38 | 2711535 Schmuck Raker
Schmuck Raker's picture

Break it out.

Thu, 08/16/2012 - 14:08 | 2711365 diogeneslaertius
diogeneslaertius's picture

engineer a crisis across the entire globalized framework and then consolidate


why not?

people still cant figure out what happened after waterloo, and now they have their face shoved into some micro-analytical meme on their fake-ass tricorders


id like to think a second renaissance were possible and indeed, inevitable. darkest before the dawn.

Thu, 08/16/2012 - 14:50 | 2711607 dracos_ghost
dracos_ghost's picture

It's called the Cloward-Pivens strategy:   

A couple of snippets:

The strategy of forcing political change through orchestrated crisis. The "Cloward-Piven Strategy" seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.


Their strategy to create political, financial, and social chaos that would result in revolution blended Alinsky concepts with their more aggressive efforts at bringing about a change in U.S. government. To achieve their revolutionary change, Cloward and Piven sought to use a cadre of aggressive organizers assisted by friendly news media to force a re-distribution of the nation's wealth.

Hmm, I'm not sure but methinks this may be the game afoot.

Thu, 08/16/2012 - 14:08 | 2711367 ZippyBananaPants
ZippyBananaPants's picture

Why everyone does not want to get in at the highs is beyond me!

Thu, 08/16/2012 - 14:29 | 2711492 Squid Vicious
Squid Vicious's picture

they're waiting for the 5 year anniversary of Cramer's "take all your money out of stocks for the next five years..." think that was in early 2009?

Thu, 08/16/2012 - 14:37 | 2711533 HaroldWang
HaroldWang's picture

This run will take us close to 1600 area before the big pullback happens. Stay long til then. When companies like AMZN with .01 in earnings is trading at 280 times, you just gotta throw all this out the window and go with the trend for now.

Thu, 08/16/2012 - 20:20 | 2712764 poor fella
poor fella's picture

Bummer I missed getting 'Chipotle'ed'.

There's still time to get Amazon'ed, Priceline'ed, Salesforce'ed, i(BM)'ed, and Apple'ed.

I only hope to live long enough to see apple-sauce. After watching each Star Wars movie as a kid I was afraid of an accident taking me out and I would miss the end. Then came LOTR, Lost, etc. Whew, MADE IT through those, but this ridiculous move in tech takes the cake.

Tech bubble II? Followed by RE bubble II? and bond bubble II?   <--- are some of these III's IV's Vs?

Interesting - maybe a 'circular ponzi' never ends if everyone's lives depend on it?  Oooo, patent lawyer in the house? Shit, if IBM can patent an outsourcing system and auto-filling out forms for government subsidies..... Maybe I got something? ?

Thu, 08/16/2012 - 14:08 | 2711369 orangedrinkandchips
orangedrinkandchips's picture





complete panic.....2.50% to 3% in days?

Thu, 08/16/2012 - 14:16 | 2711423 vast-dom
vast-dom's picture

looking like it could happen....

Thu, 08/16/2012 - 14:08 | 2711374 Headbanger
Headbanger's picture

Then is it just the algos buying on margin here?

Thu, 08/16/2012 - 14:34 | 2711427 vast-dom
vast-dom's picture

one more knight algo fuck up and black swan is ON.


Thu, 08/16/2012 - 14:35 | 2711523 Zero Govt
Zero Govt's picture

was Knight a fuck up?

some people made an awful lot of fast cash the other side of those trades, and some people with an awful lot of cash came very fast to the 'rescue'

Thu, 08/16/2012 - 23:32 | 2713184 merizobeach
merizobeach's picture

Great avatar; thanks for the laugh.

Thu, 08/16/2012 - 14:09 | 2711375 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Bond market bubble bitchez!

Thu, 08/16/2012 - 14:17 | 2711433 vast-dom
vast-dom's picture

when cash is king and inflation is about to smack up the muppets gold will soar and the SP will take a dive and the cops and national guard will conduct many more "exercises" at a city near you.

Thu, 08/16/2012 - 14:09 | 2711378 insanelysane
insanelysane's picture

The US population is aging.  They need to cash out and/or move to safer havens because it is needed for retirement.  

Thu, 08/16/2012 - 14:19 | 2711443 vast-dom
vast-dom's picture

the only safe havens are PM's. unless o.oooo1% at the bank will tide you over against 5% inflation. of course bonds are uh yeah sure....

Thu, 08/16/2012 - 14:13 | 2711399 101 years and c...
101 years and counting's picture

a wtihdrawal out of stocks adds to money on the sidelines.  bullish.

Thu, 08/16/2012 - 14:23 | 2711460 Global Hunter
Global Hunter's picture

your comment still making me laugh the 5th time I read it

Thu, 08/16/2012 - 14:21 | 2711401 ebworthen
ebworthen's picture

I'd bet the NYT reporting that Jon Corzine and the MF Global/J.P. Morgan Chase crooks will face ZERO criminal charges increases the pace.

I called up TIAA-CREF and cashed out some retirement today, and told the rep. that what made me pick up the phone was hearing that there would be no criminal charges for $1.2 billion of people's money being vaporized.  "I have NO TRUST in any company or the market, and please pass it on".

From his tone of voice and mumbled "I understand" - and he didn't bother to give me the line about how ethical and sound his company was - I could tell I was not the first person calling to cash out in disgust today.

Thu, 08/16/2012 - 15:48 | 2711907 boogerbently
boogerbently's picture

They keep talkng about all the $$$ on the sidelines. People will NOT return to the stock market until they know their money is "safe.

They will not feel their money is safe until the criminals involved in the fraud have been punished.

JPM, LIBOR, Corzine, GS.....

BILLION$$$ of dollar "disappear", and the companies involved pay a $5 million the govt. or lawyers. LOL

Lehman, AIG, MF Global, Peregrine Financial, the latest (trouble) is Knight Capital, and how many before,  and how many to come? They stole all their clients money under the guise of a "bad investment."

It's not a “technology  glitch".

It's not a “trading anomaly”.

It's the new business model.

Say it was "lost", keep the clients money, congress never punishes anyone.

Any charges????

People will wake up when Wells Fargo or B of A do it.

"Sorry....we 'lost' your money!"

Money doesn't get "lost".

If someone "loses" it, someone "makes" it.

That money didn't disappear.

Your bank could do it with your bank acct., Fidelity could do it with your retirement acct., Schwab could do it with your investment acct.....

You'd be broke, they'd be rich, we'd have no recourse, the clowns in Washington would do nothing.

Investor confidence is so low that they are heavily into Treasuries…..???

Treasuries have a negative real yield. A 1 year pays 1/5 of 1%, IF you commit your money for  10 years, you can get 1.6% per year……inflation is at over 2% a year!

That is trusting a government to pay, that has no budget, keeps devaluing its own currency, and keeps increasing its debt.

What’s “safe” about that?


Thu, 08/16/2012 - 20:04 | 2712713 rex-lacrymarum
rex-lacrymarum's picture

There is no such thing as 'money on the sidelines'. When someone sells, someone else must buy. The amount of money on the sidelines remains unchanged, all that happens is that stocks and money change ownership. 

So this whole 'money on the sidelines' shtick is something WS invented to pull the wool over the eyers of the rubes. The only important thing w.r.t. money in connection with stocks is the rate of  money supply growth - these additions to the money supply are truly 'on the sidelines' until they are spent. 

Thu, 08/16/2012 - 16:23 | 2712055 John_Coltrane
John_Coltrane's picture

The Corzine thing isn't surprising but still makes me as upset as anything in recent memory (actually along with Solindra etc).  And the crazy thing is they pretend to not know where the "vaporized" funds are.  They're in accounts at JP Morgue.  Its easy to trace wire and electronic transfers.  Obama and Holder are criminals.  I hope some irate farmer who lost his hegding funds runs Corzine over with a tractor.  Why is this guy sill alive?

Thu, 08/16/2012 - 14:13 | 2711406 Dr. Engali
Dr. Engali's picture

That 3.6 billion was Robot Trader. He went long treasuries three weeks ago.

Thu, 08/16/2012 - 14:14 | 2711408 amadeusb4
amadeusb4's picture

So let me get this straight... outflows produce low volume which results in a meltup? Is that right?

Thu, 08/16/2012 - 14:16 | 2711422 ebworthen
ebworthen's picture

Lower supply = higher demand, even for cow pies

Thu, 08/16/2012 - 14:16 | 2711425 Dr. Engali
Dr. Engali's picture

That's pretty much it. It's easy to manipulate an illiquid market.

Thu, 08/16/2012 - 14:20 | 2711445 buzzsaw99
buzzsaw99's picture

an outflow is generally one trade as in gimme my money bitchez. on the other hand active traders got killed over the past few years hence the low volume.

Thu, 08/16/2012 - 14:18 | 2711436 Quinvarius
Quinvarius's picture

I am pretty sure the public being herded into selling is still bullish and them buying bonds is confirmation of that bullishness.

I have no economic data to support a reason to buy other than Bernanke is printing a few billion dollars a day and he will probably send the DOW to 36k based on that alone.

Thu, 08/16/2012 - 14:22 | 2711455 buzzsaw99
buzzsaw99's picture

I agree, they aren't letting the sheep out at decent prices out of the goodness of their hearts. they plan to steal it back with interest from the big pension funds via a rigged market.

Thu, 08/16/2012 - 14:19 | 2711442 Squid Vicious
Squid Vicious's picture

I think this means more muppet cash on the sidelines... incredibly bullish!

Thu, 08/16/2012 - 14:24 | 2711465 Conman
Conman's picture

Yup as soon as volume picks up (muppets piling in at the top), market will drop as wall street unloads onto them. This is what we call "restoring faith in the market" thanks bernanke.

Thu, 08/16/2012 - 14:30 | 2711496 Northeaster
Northeaster's picture

If there are more people like myself, you are spot on, all cash, with a small PM physical holding position.

I don't understand, especially in light of recent court decisions, of how anyone trusts putting their money into the hands of others, knowing you may never get a penny of it back, never mind a return.

Thu, 08/16/2012 - 14:37 | 2711525 tiwimon
tiwimon's picture

"I don't understand, especially in light of recent court decisions, of how anyone trusts putting their money into the hands of others, knowing you may never get a penny of it back, never mind a return."

Complaceny and stupidity are two generalities I have found for those that think they can leave their money on someone else's table - complacent because they think that it will never happen to little ole them, and stupid in trusting that they will be covered if it does

Would you lay a $100 dollar bill with your name on it on a table and walk away and expect it to be there when you return? 

Hell no, now why would you leave it with any of these companies like MF, seriously, you're just asking for it to be taken


Thu, 08/16/2012 - 16:45 | 2712147 aerojet
aerojet's picture

I have a 401K from a previous company I worked for and they keep sending me these inane mailings trying to get me to sign up for "professional management" of my portfolio.  Right now, it's 100% Stable Value Fund, which in past times might indicate "doesn't know what he's doing" but these days, it is a shyte sight better than letting some Wall Streeter have his grimy hands on my funds and lose it even faster than throwing darts a board would have done. 

Fri, 08/17/2012 - 08:04 | 2713626 Miss Expectations
Miss Expectations's picture



Savers Flooding Stable Value Funds May Have Limited Access

“Right or wrong, there are plenty of disclosures that participants receive that nothing is guaranteed,” with stable- value funds, said Jon Upham, principal of Irvine, California- based SageView Advisory Group, a consultant to plan sponsors.

“From a practical standpoint, participants think that if they put their money in a money-market fund or a stable-value fund, they think it is guaranteed,” he said.

Thu, 08/16/2012 - 14:35 | 2711470 Everybodys All ...
Everybodys All American's picture

You have to be blind to see this not effectively setting up a collapse without the Fed buying equities in some manner right here.

Thu, 08/16/2012 - 14:27 | 2711471 ThisIsBob
ThisIsBob's picture

HFT techno-parasites running low on hosts?   Maybe they will start eating each other - one can hope.

Thu, 08/16/2012 - 14:28 | 2711490 divedivedive
divedivedive's picture

One of the windows I keep open throughout the day is a watch list of the dow stocks with realtime quotes. Prior to today I never noticed so many sales go though priced to 4 decimal places. Perhaps its a vender software change... Maybe the bots _are_ the only traders left.

Thu, 08/16/2012 - 14:30 | 2711495 geewhiz190
geewhiz190's picture

the more they pull out, the higher it goes

Thu, 08/16/2012 - 14:30 | 2711497 tiwimon
tiwimon's picture

I'm glad to say I was part of that last week, albeit, a tiny, tiny fraction of that, pulling out the very last of what I had, and it was significant to me and mine. I am completely out, many I know are completely out and surprisingly, some that I never in a million years thought were paying attention have recently been pulling their funds, taking max loans on 401k's, cashing out IRAs, CD's etc


If its not in your possession, its not yours...


Thu, 08/16/2012 - 14:37 | 2711530 Meesohaawnee
Meesohaawnee's picture

as depressed one can get about the current rigged "market", which it really isnt its just so refreshing to see everyone has caught on. Even in the dummy blogs like yahoo finance. You can see. The rigged game has been exposed. So has the blowhorn. Keep up all the good work folks. Thanks again Tylers. !

Thu, 08/16/2012 - 14:31 | 2711503 Racer
Racer's picture

Very soon it will be just the machines playing with each other

Thu, 08/16/2012 - 14:41 | 2711552 tiwimon
tiwimon's picture

But, but, but I really like hot women playing with machines...


wait, what? oops, wrong uh... website 

Thu, 08/16/2012 - 14:41 | 2711553 Doomer
Doomer's picture

Ooooooo, more algo porn for NANEX to give us.

This should end well.

Thu, 08/16/2012 - 14:42 | 2711559 Racer
Racer's picture

SNP 9% from all time highs, yep broken 'market' only algos left to hot potato it

Thu, 08/16/2012 - 14:44 | 2711566 Everybodys All ...
Everybodys All American's picture

The market is simply not tradeable if the direction in this case higher is rigged. It does not matter what fundamentals or news comes out the market moves 'forward'.

Thu, 08/16/2012 - 14:48 | 2711591 Racer
Racer's picture

That's the problem... if it is all based on hopium and no real fundamentals, when the HFT crowd decide to not participate it will gap down and no chance of getting out at a decent price. IF you are greedy and wait with your long, 'profit' will be long gone

Thu, 08/16/2012 - 14:46 | 2711574 Flaming Ferrari
Flaming Ferrari's picture

Investors getting Group FacedF8cked again today. No wonder they are Zynging off.

Thu, 08/16/2012 - 14:47 | 2711583 Doomer
Doomer's picture

Gonna go out on a limb and say we get a 4 yr high by close today.


Future's so bright, I gotta wear shades!

Thu, 08/16/2012 - 14:50 | 2711604 Hohum
Hohum's picture

I am convinced that the more time and effort go to the stock market, the worse the economy will get.

Thu, 08/16/2012 - 15:03 | 2711693 Keegan11
Keegan11's picture

Has it dawned on anyone else that perhaps the retail consumer is essentially dumping his equities to then go out and buy iPhones, etc...? No volume in equity markets, higher energy (despite the latest CPI), and alas, a sudden 'spike' in retail sales? Where do you think that cashis coming from, increase in wages??? Pfffft

Thu, 08/16/2012 - 15:06 | 2711713 Downtoolong
Downtoolong's picture

the now extinct investor class is concerned, return of capital is the only thing that matters, while HFTs and prop trading desks can fight over all the return on capital scraps provided courtesy of the Chairman.


Which is just another route by which we fund their folly, and we all know who ultimately pays for it when they fail and get it wrong. In the end, the little guy can’t win, no matter what he does, unless he gets out completely.



Thu, 08/16/2012 - 23:31 | 2713181 merizobeach
merizobeach's picture

And by "completely", I might add 'nation of residence' to the list.

It's nice out here.  :-)

Thu, 08/16/2012 - 15:29 | 2711813 Darth Mul
Darth Mul's picture

Speaking of an 'Exodus'...


What do the chairs/heads of the following finance-regulatory federal agencies.departments have in common?



{and the which is subsumed under the EOPOTUS} *{chief economist}

They also have it in common with The Chair and 4 of the 7 members of the "Federal" "Reserve" Board:

and - surprisingly - only 4 or maybe 5 of the 12 regional bank presidents:

and probably around half {therefore} of the mighty FOMC


Now - here's a hint, and it goes to belief and ethnocentrism but not to race or religion per se:


The truth isn't always comfortable.  Lies are comfortable.

Thu, 08/16/2012 - 23:59 | 2713214 merizobeach
merizobeach's picture

Great excerpt from Joseph Campbell in that last link:

"A young Hindu gentleman came to see me, and a very pious man he proved to be: a worshipper of Vishnu, employed as a clerk or secretary of one of the Indian delegations at the UN. He had been reading the works of Heinrich Zimmer on Indian art, philosophy and religion, works that I had edited many years before, and which he wanted to discuss. But there was something else he wanted to talk about too.

"You know, " he said after we had begun to feel at home with each other, "when I visit a foreign country I like to acquaint myself with its religion; so I have bought myself a Bible and for some months now have been reading it from the beginning; but you know"... and here he paused, to regard me uncertainly, then said, "I can't find any religion in it!" ... Now I had of course been brought up on the Bible and I had also studied Hinduism, so I thought I might be of some help. " Well," I said, "I can see how that might be, if you had not been given to know that a reading of the imagined history of the Jewish race is here regarded as a religious exercise. There would then, I can see, be very little for you of religion in the greater part of the Bible." I thought that later I should perhaps have referred him to the Psalms; but when I then turned to a fresh reading of these with Hinduism in mind, I was glad that I had not done so; for almost invariably the leading theme is either the virtue of the singer, protected by his God, who will "smite his enemies on the cheek" and "break the teeth of the wicked;" or, on the other hand, of complaint that God has not yet given due aid to his righteous servant: all of which is just about diametrically opposed to what an instructed Hindu would have been taught to regard as religious sentiment.  In the Orient the ultimate divine mystery is sought beyond all human categories of thought and feeling, beyond names and forms, and absolutely beyond any such concept as of a merciful or wrathful personality, chooser of one people over another, comforter of folk who pray, and destroyer of those who do not. Such anthropomorphic attributions of human sentiment is -- from the point of view of Indian thought -- a style of religion for children." [CAMPBELL, Myths, pp. 93-94]
Thu, 08/16/2012 - 15:42 | 2711878 Waterfallsparkles
Waterfallsparkles's picture

Banks though that they could crash the Market in 2008 and then stage a recouperation.  Yet, any Retail and especally those near retirement were scared beyond belief.  Like seeing their world evaporate away.

Wall Street thought that by bringing the Market back to prior highs everything would be OK.  Well, anyone that got wiped out of 70% of their investments and now is close to even just wants their Money BACK.  And by back means never to be put into the Market again.

Thu, 08/16/2012 - 15:44 | 2711889 theprofromdover
theprofromdover's picture

You can bet the pension funds are still in there, vaporising your savings.

Thu, 08/16/2012 - 15:45 | 2711896 Waterfallsparkles
Waterfallsparkles's picture

Would anyone invest with a den of Theives?

Thu, 08/16/2012 - 15:50 | 2711913 Lost Wages
Lost Wages's picture

Fuck it. What ya gonna do?

Thu, 08/16/2012 - 16:07 | 2711994 Elmer Fudd
Elmer Fudd's picture

Return of Capital?  From a bond fund?  Bwahaahahaha!!!  Folks obviously don't know how a fixed-income (bond) fund works and do not read or understand what's in a prospectus.  The smoke and mirrors of monthly reinvestment keep the illusion of growth and safety.  Its going to get ugly if that is where that money is flowing.

Thu, 08/16/2012 - 16:26 | 2712065 Lost Wages
Lost Wages's picture

Obviously the market doesn't give a fat frog's ass what retail does. Has no effect on the numbers whatsoever. What the muppets don't buy, the algos and cronies will.

Thu, 08/16/2012 - 18:21 | 2712452 Quantum Nucleonics
Quantum Nucleonics's picture

There's a serious flaw with the "Stock mutual fund flows are negative so the individual investor is leaving the room" argument... ETF's.  ETF's are not included in this data.  It is certainly true that individual investors, to some degree, are moving away from the stock market, but using this MF data to support that conclusion is flawed logic.  Individual investors are smarter than people give them credit for, they/we know that actively managed mutual funds don't beat the indicies dispite high fees.  Match the market for 10bp or underperform for 10x as much.  Pretty simple.

Sun, 09/23/2012 - 14:56 | 2822491 alp
alp's picture

The falling volume means that the rally from 2008 lows is just a retracement which has been overextended thanks to a lot of hope and CB intervention:

SP500 -

The same low volume pattern can be seen in the DJIA.

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