Fund Flows Show An Enormous Panic

Sunday, August 22, 2010
By Paul Martin

Vincent Fernando, CFA
Aug. 21, 2010

Back in June we highlighted how May had seen the most negative fund flow out of U.S. stocks since during the crisis, based on the fund flow data of long term mutual funds tracked by the Investment Company Institute.

An updated chart, below, shows that June and July have been pretty severe as well, even if fund flows weren’t as negative as in May. Moreover, the first two weeks of August experienced negative outflows as well (not shown). If you’re paring back your stocks in favor of bonds, then just be aware of the fact that most people are probably doing so, and have been doing so for quite some time. Red bars below represent fund flows for U.S. equity mutual funds, gray bars represent fund flows for bond mutual funds.

The Rest…HERE

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