Americans Want Their Money Out Of Funds

"Talk about a behavioural shift in approach. American investors pulled $2.8 billion out of equity funds in November, the third outflow in a row. Year-to-date, stock funds saw net redemptions of $4.1 billion despite a 20% up-year in the market, and this followed a $213.5 billion outflow in 2008. It may be safe to say that the equity cult is dead. When it makes it to the front pages of the tabloids, as it did in August 1979 with the now-famous BusinessWeek cover at that time, then maybe it will be safe to call for the true bottom three years down the road."



"The bulls point to all the “dry powder” sitting on the sidelines, just waiting to be put into the market. Indeed, investors are liquidating their money market funds — there were outflows totaling $46.7 billion in November and $71.8 billion in October. But this money is not heading in the direction of the equity market. Bond funds took in $44.9 billion in November — the fourth highest ever — and through the first 11 months of 2009 the inflows to fixed-income funds came to a record $349 billion; and this doesn’t include the $20 billion through 2009 into hybrid funds (+$3.4 billion in November)."

Source: Breakfast With Dave

Image: The Business Insider