Thursday, January 13, 2011

New Year New Outflows From Equity Funds

So apparently US stock markets are doing VERY well. And as per yesterday's trading, Stocks climb to 2-year highs.

Now what would be the normal assumption?

Folks will be rushing into the markets, yes?

Folks would be rushing to put in MORE money into their long term equity mutual funds, yes?

But what if the data shows that the Americans are not doing so but instead they have been taking more money out from their equity mutual funds?

Oh yeah, they are baccccccccccck! Back in a vengeance too!


Despite the markets hitting highs, Americans have started the brand new year by withdrawing some 4.229 Billion from their equity funds.

And I have noticed that 21 December data had be revised to an outflow of 453 million.

Which means my posting on 30 December 2010 is faulty!

And We Have A Stop In Outflows!

Which means that we had witnessed 34 consecutive weeks of outflow since 28th April 2010.

And the amount withdrawn?

Just some 103.989 Billion!

You can verify the data here.

And yeah... the market is still going up. :=)

Past postings:


Mun Wai said...


Wonder if your funds flow analysis + TA would have reasonably predicted the recent series of "meaningful" correction way back in several months ago (while most are still on the cloud 9 in the midst of mr Market's pretty runs)


Moolah said...

Mun Wai,

This wasn't any serious analysis at all.


All I did was refer to ICI's weekly report. I was merely interested in knowing the 'general' thinking of the American public towards their stock market.

And no.. I seriously cannot do no prediction. Not all.

Moolah said...

ps: The inflow back into the equity funds have been strong this year. Many are aying the funds withdrew from the muni bond funds (thanks to Meredith's comments) and back into the equity funds. Last week, according to ICI data, there were some 5 billion flowing back into the equity funds.

Mun Wai said...

Oops ! I've totally forgotten that Moolah is a cow and is still a cow, not a Sotong.

Thanks anyway :)



Moolah said...


If you would like to read more, here's a tip, google for Jim Rogers and his recent comments about emerging markets.

Mun Wai said...


Jim Rogers shorts Nasdaq and emerging markets.

Thank Goodness!

Thanks for sharing!

Cheers !