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Not only have investors been pulling cash out of stock funds all year, but the pace of the...

Not only have investors been pulling cash out of stock funds all year, but the pace of the outflows is picking up. Investors pulled $10.6B out of stock funds in the week ended Oct. 3, ICI reports, in the biggest weekly outflow since Aug. 2011. There's no end in sight to the trend of flows moving from stock to bond funds, and it could accelerate further if the current mini-selloff gets any worse.
Comments (13)
  • Four more years! Four more years! Four more years! Four more years! LOL
    11 Oct 2012, 07:12 PM Reply Like
  • Part of this trend should also be related to people (the baby boomers) retiring, no?
    11 Oct 2012, 07:14 PM Reply Like
  • I was thinking they are pulling money out to pay for increased cost of gasoline, groceries, health care, and property taxes.
    11 Oct 2012, 07:17 PM Reply Like
  • Any sane person, knows that Obama cannot keep propping the market up, that Obama is on a downward trend, and that any sane Republican plan will force the hardships on Wall Street that should have occurred in 2008 (and will occur sooner or later.)


    I personally, have no plans to be long until after the end of 2012 (not to say I don't take advantage of short term opportunities.)
    11 Oct 2012, 07:15 PM Reply Like
  • Yes, the masses, headed to the sidelines, have it all figured out correctly, as they do most times, right? They got it all wrong in 1929, 2000, and 2008, but this time, dang-nab-it, they're not going to get fooled, again. They'll be right in the sweet spot when it all collapses.


    Stay tuned for the next chapter in this exciting story.
    11 Oct 2012, 07:56 PM Reply Like
  • If it's because of retirements, then it might be mechanical.


    Check this:


    Stocks, Bonds And Demographics
    11 Oct 2012, 08:06 PM Reply Like
  • Doesn't the ICI data measure mutual funds? How much of the outflow is just mutual funds losing market share to ETFs?
    11 Oct 2012, 08:04 PM Reply Like
  • Excellent point, Stephen. I was thinking the same thing.
    11 Oct 2012, 08:07 PM Reply Like
  • The money is flowing from stocks to bonds,
    11 Oct 2012, 08:13 PM Reply Like
  • U.S. equity ETFs saw $22B of net inflows in September, $31B in Q3.


    U.S fixed income ETFs saw $2.5B of net inflows in September, $6.6B in Q3.

    12 Oct 2012, 12:53 AM Reply Like
  • Chumps. Let them go.


    11 Oct 2012, 08:31 PM Reply Like
  • The key point to focus on is not the stock market.


    Are you IN risk or OUT risk? Holding stuff or cash?


    I would say the crowds are IN STUFF (whether that be stocks, etfs, bonds, commodities,etc). The crowds will be wrong again. Cash is king. Money is scarce. Its hard to earn, difficult to save after living expenses, difficult to invest without massive risk. Total global supply declining. Even with central bank QEs, its not enough as credit is collapsing into reality.
    12 Oct 2012, 02:11 AM Reply Like
  • When stock markets reach their tops investors don't expect considerable earnings in stocks, so they look elsewhere, similar situation occurred in both august 2011 and 2 weeks back. Inflows return after a market correction , when expectations are better. Nothing weird really.
    12 Oct 2012, 02:38 AM Reply Like
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