Seeking Alpha

October stock fund inflows 3rd highest month ever

  • Estimated at $54B, according to TrimTabs, stock fund and ETF inflows in October were the 3rd largest monthly total on record. Bond funds lost $26B during the same period, the worst month since 2000.
  • Separate data from BlackRock shows a rush of money entering funds following a deal to end the government shutdown  - $24.3B of the $32.9B of money entering ETFs worldwide during the month occurred after October 17.
  • Total market ETFs: IYY, VTI, EXT, TOTS, EUSA, ITOT.
Comments (5)
  • financeminister
    , contributor
    Comments (735) | Send Message
     
    This is why you can't time the market and need to have a good cash position to buy during drama - fed taper, shutdown, debt ceiling. September was a good month to buy and october was a good month for gains once the circus winded up.
    4 Nov 2013, 01:24 PM Reply Like
  • sarichter
    , contributor
    Comments (279) | Send Message
     
    Exactly... you can't time the small dips, but you sure can time the big drops. Mind the noise from the media. It's quite amazing that people didn't see the housing crisis from a year out. I can't imagine anyone thinking that would turn out well :)
    4 Nov 2013, 01:27 PM Reply Like
  • Apostle
    , contributor
    Comments (12) | Send Message
     
    I wonder how much of this is Fed's newly printed QE money vs. the money in investor's hands, previously known as "the cash on the sideline"
    4 Nov 2013, 01:31 PM Reply Like
  • financeminister
    , contributor
    Comments (735) | Send Message
     
    Could be more of the former. From what I read, majority of retail investors aren't in the market yet... they might start loading in now as talking heads are starting to declare that there won't be a major correction for sometime to come and all the sheep need to be in the market to be part of the slaugt...er I mean bull run. When they pile in, that's probably when the last stage of the bull market has started.
    4 Nov 2013, 02:29 PM Reply Like
  • GizmoA51
    , contributor
    Comments (116) | Send Message
     
    Just my luck, I was already fully invested so missed out on the rush.
    4 Nov 2013, 03:07 PM Reply Like
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