Monday, September 27, 2010

Reply From Kokanart: Time To Highlight The Other Side Of Your Obsessive Focus

From the posting: 20 Consecutive Weeks Of Fund Outflows And 71 Billion Withdrawn From Equity Funds

  • kokanart said...

    It's time to highlight the other side of your obsessive focus:
    US small investors fleeing their mutual funds.

    A recent report on Bloomberg says:

    Record-low interest rates are stoking the biggest increase in share buybacks ever.

    U.S. companies have announced $258 billion in buybacks so far this year,
    compared with $52 billion in the first three quarters of 2009, according to data compiled by Birinyi. The almost fivefold increase is the largest for any January-to-September period since at least 2000, when the Westport, Conn.-based research firm started tracking the data.

    Corporations are using debt to pay for buybacks.

    Companies from Microsoft to PepsiCo and Hewlett- Packard are taking advantage of low-cost financing, purchasing their stock to boost per-share earnings.

    So, are the small investors the smart money this time or will it be the big insiders ( thru company buybacks ) ?

    Time will tell ...

    PS: the local market may be hot but we are discussing the US market.
    Also, as swifz pointed out, it is senseless to highlight only one side of the story.
    Do try to be more balanced.
    Mr. Soros said: I'm only rich because I know when I'm wrong.

The other side of my obsessive focus?


Oh dear.

Such a nice message to kick off a Monday morning.

You do realise that this is a mere blog of mine and a blog is a collection of personal writings and notes.

And if you do realise this issue then you should have an open mind and realise that I owe NO ONE nothing.

I blog based on my personal preference and this blog reflects who I am. I am not going to bow to anyone to dictate what I shall blog and shall not blog.

Now I do hope you understand such a simplistic issue.

Regarding stock mutual fund redemption. That's a fact inside? 20 consecutive weeks, since 28th April, Americans have been making net redemption from their stock mutual fund holdings. And this issue is not about their stock market going up or down? ( Hmm.. are you afraid that I am the bearer of the bad news that could end this jolly good bull run? LOL! Comeon.. seriously?)

Yeah, dude, I am merely stating this fact.

Seriously, is this fact disturbing? And have I stated that the markets will crash?

Yes, is the fact that 72 billion had been withdrawn form their funds a huge worry for you?

Now I been updating this issue since it became an issue. Should I stop because some feel I am obsessive? Would I be doing justice to all those who are interested to see when the redemptions would end? Yeah, should I stop blogging on this issue and let other readers guess what has happened?

Ah... companies using debts to do share buybacks.

Is that good? If your opinion is that's is good, then I surely respect your opinion.


Oh... the other side of the coin would be the good news side, eh?

Do I need to turn this blog into one of the countless good news blog cheerleaders? Nah, I don't. I have no desire and no motivation. And if you think this is a blogging mistake, then it's a mistake. I have no problems with what you think of my blog. But if you need to read ONLY the GOOD news, then I am so sorry that this blog shall disappoint you and perhaps it should not be in your click zone!

Yeah man, live on the vitamins of good news and all other news that are potential negative issues just simply taboo and should not be mentioned. :-)

ps: the fact that insiders have been disposing their shares is NOT a worry too. ( Don't worry I did NOT state the markets will crash because of this. Just stating the facts. )

ps: That's a nice word of advice from Mr. Soros. :-)


Apparently, I got another comment:

  • kuan said...
    Moola ,I forgot to add my last line - Can millions of small investors be wrong ?

    Why not?

    They can also be right, when people like Soros are wrong.

    No one's perfect all the time.

LOL! LOL! 'Forgot to add my last line'?

Are you saying that you and "kokanart" is the same?


ps: so fun to post in multiple 'names' eh?

ps/ps: next time, don't bother.

ps/ps/ps: try growing up. :-)


Amazing isn't it? To stress a point, does one have to go thru extremes like 'creating multiple nicks'?

ps: winning an internet argument? LOL! LOL! LOL!

ok.. ok... I lose. :-)


pica said...

Hope kokanart realises that share buybacks are one way companies use company money to support share prices or - as some players in KL do - take their shares (of course at a better price).
Maybe this is his first financial crisis?

Moolah said...

Just wondering.. :-)

If this 'small' redemption of equity mutual funds is a non-issue, why bother that I make a weekly update on this?

Errr... maybe this blog is louyah lor... nothing else better to blog on.