Stock Mutual Fund Outflows Continue Unabated
Typical herd mentality for investors to be piling into bond funds at record low interest rates. They did it in 2000 with tech stocks. They did it in 2006-07 with real estate on the coasts and now bonds. ICI reported that total equity funds had a $1.4B outflow last week and over $12B for the last five weeks. The positive news is that bond funds had a lot more money flow into them leaving the weekly net increase of nearly $6B. When the market turns it could be sudden and dramatic. Until then though, it'll be difficult to gain much ground with dry powder held by institutions such as mutual funds continually sucked out. 7/14/2010 7/21/2010 7/28/2010 8/4/2010 8/11/2010 Total Equity -3,192 -1,157 -4,074 -2,201 -1,427 Domestic -3,235 -1,402 -4,296 -2,122 -2,073 Foreign 43 246 222 -79 646 Hybrid 430 370 69 233 213 Total Bond 6,138 7,931 7,099 7,551 7,169 Taxable 5,200 6,944 6,112 6,350 5,788 Municipal 937 987 987 1...