Retail Cashing Out

Over $5 billion left domestic equity mutual funds last week even though the market was higher. Week after week we have seen huge outflows from mutual funds. This is likely a large part of the reason so many growth darlings have been getting killed. Hedge funds don't generally own the stocks that trade at 50 times earnings. These are generally stocks that large mutual funds like Fidelity and Janus own.

5 comments:

Anonymous said...

The price action in commodities is telling me a scary story.

Tsachy Mishal said...

I think this is all about the ECB. If they do what is necessary commodities will likely fly.

Tsachy Mishal said...

If they don't commodities will continue lower.

Anonymous said...

The price action probably says ECB action had been priced in, and now is being unwound. Hopefully a sign of capitulation!

Shubh Desai said...

I see all negative news but S&P is far above 1075. I see more bad talk but less action in index.