Stone Fox Capital Advisors is a registered investment advisor founded in 2010. The firm offers portfolio management with a focus on opportunistic stocks providing secular growth trends at an affordable value. An emphasis is placed on fundamental analysis though charts are used for timing entry... More
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
1,201
1,382
Total
3,376
7,144
3,094
5,583
5,955
On a very bright note, Intel (INTC) agreed to buy McAfee (MFE) for nearly $8B in cash. Though the 58% premium did nothing for the market today though it should've lit a fire under valuations, the deal will eventually lead to an $8B cash inflow to stock funds. Such deals do provide cash inflows for the market. Since corporations are flush with cash, they could provide the support needed as individuals continue to leave at the wrong time.
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Stock Mutual Fund Outflows Continue Unabated 0 comments
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.
On a very bright note, Intel (INTC) agreed to buy McAfee (MFE) for nearly $8B in cash. Though the 58% premium did nothing for the market today though it should've lit a fire under valuations, the deal will eventually lead to an $8B cash inflow to stock funds. Such deals do provide cash inflows for the market. Since corporations are flush with cash, they could provide the support needed as individuals continue to leave at the wrong time.
Disclosure: No positions
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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