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An eye-opener, domestic equity funds had $30B in outflows in October, according to a Goldman...

  • Monday, November 12, 2012, 12:28 PM ET
    An eye-opener, domestic equity funds had $30B in outflows in October, according to a Goldman report (as reported by Raj Dhaliwal). It's the largest amount of the year, and represents one-third of all of 2011's outflows. Bond funds had their biggest inflows of the year - $44B against an average $32B. (see credit risk "euphoria")
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This news story has 8 comments:

  • If the FED wanted to sustain current equity valuation all they need to do is withdrawal their commitment to keep rates at zero through 2014. Or, if they want to see a good rally they should announce their policy decisions are successful and raise rates .025. Watch those billions in bonds rush into equities in a matter of a week or two. They want it both ways, low rates and high equity valuations- that won't continue as one or the other will loose value.
    12 Nov 2012, 12:58 PM Reply Like
  • J,
    What leads you too believe that the US or almost any other country can afford to pay higher interest rates? Take Japan as an example. It has been estimated that a mere 1-2% rise in Japanese interest rates would result in interest alone consuming 100% of tax revenues. Why do you think governments and central banks are so desperate to keep interest rates as low as they possibly can? What would happen to the US as the largest debtor in the world if interest rates rose even just 1/4%? Much more likely to continue to see pressure on interest rates to decline even further.
    12 Nov 2012, 11:25 PM Reply Like
  • Election!
    12 Nov 2012, 03:20 PM Reply Like
  • Great contrarian sign, big outflows tend to happen at the worst times for investor´s portfolios, then they miss a rally and so on. I´m covering my short positions tomorrow morning.
    12 Nov 2012, 05:14 PM Reply Like
  • Already out of shorts and looking for a 100-200 point dow rise to get back in for the next leg down.
    12 Nov 2012, 06:55 PM Reply Like
  • LOL, where are all the equity perma bulls who have been predicting massive outflows from bonds for months and years now. Hasn't happened yet and won't be happening for years to come yet. The total rising debt issuance in the US and world will continue sucking up funds for a long long time yet. Even the serial printing central banks can't print money fast enough now to satisfy the ever rising world debt loads.
    12 Nov 2012, 11:18 PM Reply Like
  • Best news yet!
    13 Nov 2012, 12:18 AM Reply Like
  • Seems to be tax driven for Big Money and fear driven for little money.

    Most individual investors will tend to ignore these flows from one manipulated "market" to another and focus instead on specific companies.
    13 Nov 2012, 05:26 AM Reply Like
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