Today's Lipper/AMG fund flow data confirmed the ICI data disclosed earlier: in the week ended July 7, in which stocks have rallied by who knows how many percent - nobody without Gallium Arsenide logic gates really keeps track of the market anymore, equities saw outflows of $11.6 billion. We'll repeat it because it bears repeating: stocks have surged as mutual funds have seen one of their biggest weekly outflows in 2010. Will someone with a Ph.D. from a reputable institution please explain that one to us. Furthermore, HY fund lows saw yet another exodus, this time of $166 million, following last week's $322 million. On the other hand, things in IG land are back to normal: after seeing their first outflow in 69 weeks last week for a tiny slip of $32 million, investors are back to dumping all their money in investment grade corporates, with inflows of $896 million. And most notably, money market funds saw their biggest inflow in 2010, at $18.5 billion, following last week's outflow of $11.6 billion. So yes, money was actively being allocated to cash yet somehow the powers that be managed to ramp the computerized stock market farce that is the Dow by something like 500 points in 4 days. Whatever. Will the three blind mute retarded monkeys who actually still have any faith left in our ridonculously manipulated market please follow all the other lemmings over the cliff, not forget to pay Goldman Sachs the $200 suicide fee, and shut the light on their way out.
Here are some other thoughts from BofA:
HY fund flows exhibited a mixed picture this week. The headline AMG flow figure came in at negative $166mn, following in the footsteps of a $322mn exodus a week earlier. Market performance over the past few sessions suggested there could have been a stronger flow figure in store, given a slight increase in shares outstanding of HY ETFs, steady gains in cash bonds, and strong demand for new issues. Yet the daily breakdown of flow from EPFR has shown smallish but steady outflows in every session earlier this week. Notably, HY outflows were indiscriminate across retail and institutional funds, as well as U.S. versus non-U.S. HY accounts.
And some pretty charts and tables.