Posted on 10/10/2014 5:07:41 PM PDT by SatinDoll
High-yield bond mutual funds saw outflows total an eye-popping $7.1 billion last week.
"HY flowmageddon," said Goldman Sachs' Charles Himmelberg in a research note we saw via @lebullmarche. "This is the largest HY outflow on record – a 6-sigma event when flows are scaled by mutual fund assets under management!"
[snip]
A 6-sigma event is extremely rare. If you want to put a number to it, think 1 in 500 million. According to Business Insider quant reporter Andy Kiersz, it's like flipping a coin 29 times in a row and getting heads each time. It's like rolling a die 11 times in a row and getting 6 each time.
(Excerpt) Read more at businessinsider.com ...
1. The market ended the third quarter at or near record highs. A lot of savvy investors have probably been selling off their holdings to lock in those returns.
2. The market might be declining even as the economy might be improving. Oil prices seem to be in a free-fall, driven mainly by the strengthening of the U.S. dollar. Why would the U.S. dollar be getting stronger as the stock market declines? A share of Company X might be "worth" more in U.S. dollars today than it was last week even as the dollar-denominated price of that share has fallen.
"Ceterum censeo 0bama esse delendam."
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
Bump
It means a conspiracy manipulating the bond market.
Unless you're a tin-foil hat wearer who actually believes a 1-in-500-million longshot actually came in.
But it wasn't a conspiracy when junk bond yields fell so unnaturally for so long?
Where else .........
The Fed...
But what we are talking about is Mutual funds..
Everybody with cash on the sidelines has been waiting for a long overdue correction.
This might be it...or it might be a pause or profit taking.
With gold down and more bond outflows at the same time...It is a bit weird...
But if you look at what I think is the catalyst for this, Europe’s financial woes, I think it might be a correction.
My bet is that it’s not yet time to catch that falling knife.
LOL, outstanding.
Who says you have to have knowlege to have an opinion? What planet are you on?
Of course it was a conspiracy. Its all a conspiracy. What, do you think billionaires and politicians and CEOs stay up late at night and go to conferences in order to figure out how to play fair, how to follow the law, how to avoid illegal collusions, and how to make sure there is a level marketplace?
LOL, they're all a bunch of lying, cheating, backstabbing thieves - and proud of of it. And their fundamental motto is: "We're in, and you're out, sucker."
But don't feel bad. These demons are saying this to an entire planet, so its not like they're singling anyone out... right?
The best news, though, is that they've finally managed to attract the attention of God...
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