20’th Consecutive Outflow From Domestic And Mutual Equity Funds

Posted By on September 22, 2010

The stock market is now virtually unchanged in 2010, even as almost $80 billion in equity-capital has been withdrawn.  

So here is the question: How is this possible?  Well….it’s a deep subject and we don’t know!

20’th Consecutive Week Of Outflows

Beginning on May 5, there have been 20 consecutive outflows from domestic mutual equity funds. The average weekly outflow has been ($3.5) billion. Total outflows in this period are $70 billion. Total outflows YTD are $68 billion. The S&P on May 5, the day the series of outflows began, was 116.8. Today it closed at 113.5, a 2.8% decline despite almost $100 billion of runrated outflows. Furthermore, as previously disclosed, YTD ETF flows through August into pure domestic equity-related strategies have been a negative $16.8 billion. The stock market is now virtually unchanged in 2010, even as almost $80 billion in equity-capital has been withdrawn.

Weekly flows into domestic equity mutual funds:

Cumulative equity flows into domestic equity mutual funds:

Source: ICI

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