Money Heading Out….14’th Sequential Week Of Equity Outflows
Posted By thestatedtruth.com on August 12, 2010
14’th Sequential Week Of Equity Outflows
We have now had over one quarter of non-stop redemptions by mutual funds, which means, by end-retail investors. The problem is that now everyone is starting to notice 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 avoiding stocks, as the no-volume surge of July was not sufficient to bring one meager week of inflows, and in fact, July saw almost $16 billion in outflows. So, if a 10% surge in stocks is not capable of bringing retail back into stocks, perhaps it is time the administration and the SEC ask themselves, “what will?” How will the market drop of this week impact  fund flows. If history is any indicator, it will not be pretty.
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