According to Mark Hurbert “the data from TrimTabs Investment Research shows that the net outflow for the month of September from domestic equity open-end mutual funds was $11 billion — the biggest monthly outflow since March, the month in which the bear market hit bottom. This trend continued for the first five trading sessions of October (through this last Wednesday, in other words), over which time an additional $4.1 billion was pulled out.
By the way, the other trend I mentioned in my mid-September column appears to be alive and well and, if anything, getting stronger: I am referring to mutual fund investors’ love affair with bonds. According to TrimTabs, open-end bond mutual funds in September had their strongest month of the year in terms of net new cash invested in them. And, if we extrapolate on the data for the first five trading sessions of October, October might be a month of even bigger net inflows.” Read full story here.
This rally continues to climb a wall of worry. Could the masses be wrong again with bond prices at nose-bleed levels while stocks continue to recover but only benefiting the courageous few?
Bubble bubble me thinks its the bond market!
You must be logged in to post a comment.