The Boycott Continues: 14th Sequential Week Of Equity Outflows

Another week, another vote of no confidence in the market. It is getting really bad: we have now had over a quarter of non-stop redemptions by mutual funds, which of course means, by end-retail investors. The problem is that now everyone is starting to notice the stench that the market is not supported by anything except momentum manipulation and primary dealer machinations. Per ICI, the week ended August 4 saw an outflow of ($2,788) MM, bringing the total to over $46 billion in domestic equity redemptions year to date. Retail is now fully boycotting stocks, as the no-volume surge of July was not even sufficient to bring one meager week of inflows, and in fact, July saw almost $16 billion in outflows. If not even a 10% surge in stocks is capable of bringing retail back into stocks, perhaps it is time the administration and the SEC ask themselves, "what will?" We can not wait to see how the market drop of this week impacts fund flows. If history is any indicator, it will not be pretty.