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Fund Flows Show An Enormous Panic
The Business Insider ^ | 8-21-2010 | Vincent Fernando, CFA

Posted on 08/21/2010 9:26:33 PM PDT by blam

Fund Flows Show An Enormous Panic

Vincent Fernando, CFA
Aug. 21, 2010, 1:55

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.

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: bonds; economy; markets; stocks
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1 posted on 08/21/2010 9:26:36 PM PDT by blam
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To: blam
George Soros slashes exposure to US equities

Snips: The legendary investor's Soros Fund Management – which has approximately $25bn (£16bn) under management – reduced its equity investments by 42pc to $5.1bn by the end of June, down from $8.8bn at the end of March.

Gone are Soros's investments in Petrobras, Brazil's oil giant, with investments in bellwether stocks such as Wal-Mart, JP Morgan Chase and Pfizer drastically reduced, cut by 99pc, 97pc and 95pc respectively.

2 posted on 08/21/2010 9:33:42 PM PDT by MamaDearest
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To: blam

People rushing into bond funds will be in for a nasty suprise if interest rates go up. I would not be to keen on stock funds either.

If you are buying equities - look outside the USA. Look to conuntries where they do not elect muslims and where the populace support the Imam by watching TV including Fox/Saudia which is not really any better.

ALL of TV supports the Imam.


3 posted on 08/21/2010 9:35:20 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: blam
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.

And watch out for those 'bundle mortgage securities' I think they are sold as bonds, as some mortgages are still defaulting, and your bond investment will be negative from day 1.
4 posted on 08/21/2010 9:36:15 PM PDT by Son House (The Bush Tax Cuts Produced Better Results Than All The Democrat's Stimulus Bills Combined.)
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To: blam

I’m thinking that a good investment is a warehouse full of non perishable goods that would be in high demand in the event of a calamity.

Alcohol & Tobacco (desirable goods for barter)
Toilet paper
canned goods
rice and flour
first aid supplies

Rule of thumb: Make a list of those things that you would miss the most if you suddenly could buy nothing for 2 months. You can bet everyone else will be missing them, also.

Include enough weapons and ammunition to protect these goods.


5 posted on 08/21/2010 9:53:30 PM PDT by ChildOfThe60s (If you can remember the 60s, you weren't really there.)
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To: ChildOfThe60s

Very good list and advice.


6 posted on 08/21/2010 10:06:21 PM PDT by unkus
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To: blam

Who would be stupid enough to increase their exposure to 0bamanomics?

Flee U.S. investments until we win in November, and repeal everything.


7 posted on 08/21/2010 10:40:29 PM PDT by Uncle Miltie (Why are 100% of Rape / Assaults in Oslo, Norway, committed by Muslims?)
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To: ChildOfThe60s

... coffee and sugar at the top, for barter.


8 posted on 08/21/2010 10:45:08 PM PDT by WVKayaker (Faith is putting all your eggs in God's basket, then counting your blessings before they hatch.)
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To: blam

Yikes, where does a freeper go next? I’m thinking palladium, platinum and gold, but today’ Wall Street Journal article suggested that Palladium was too thinly traded.

Wild Trading in Metals Puts Fund Manager in Cross Hairs - WSJ.comAug 20, 2010 ... Order a reprint of this article now; The Wall Street Journal ... Christopher Pia was the quintessential hedge-fund success story: a hard-charger ... Mr. Pia improperly tried to push up prices of platinum and palladium, ...
http://www.topics.wsj.com/article/SB20001424052748704289504575312452485699806.html - Cached


9 posted on 08/21/2010 10:46:39 PM PDT by Kevmo (So America gets what America deserves - the destruction of its Constitution. ~Leo Donofrio, 6/1/09)
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To: blam
Less money in funds... people sucking down 401(k) funds... this will have a negative effect on a 10,200 Dow. Buying power is eroding. So... what is propping up stock prices?
10 posted on 08/21/2010 11:02:20 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: unkus
Had a meeting with some rather heavy hitting insiders this morning...

That panic is spreading even on that level. I've never seen these folks sound so negative and high key. It's spooky...

Glad the "Redoubt" is near completion. That wild ride we've been expecting draws ever so near...

11 posted on 08/21/2010 11:14:45 PM PDT by JDoutrider
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To: JDoutrider
"That panic is spreading even on that level. I've never seen these folks sound so negative and high key. It's spooky..."

To what level are you referring?

12 posted on 08/22/2010 8:15:21 AM PDT by blam
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To: April Lexington
So... what is propping up stock prices?

Why, hope and change, ya silly!

13 posted on 08/22/2010 8:17:41 AM PDT by P.O.E. (Compact Theory)
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To: MamaDearest
"Gone are Soros's investments in Petrobras, Brazil's oil giant, with investments in bellwether stocks such as Wal-Mart, JP Morgan Chase and Pfizer drastically reduced, cut by 99pc, 97pc and 95pc respectively."

It seems to me that Wal-Mart would be a good investment in tough economic times.(?)

14 posted on 08/22/2010 8:18:21 AM PDT by blam
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To: blam
Disturbing Trend -- and Worse to Come [Hardship withdrawals from 401(k)'s at record high]

Spend it while it's still worth something? (Or, before it's rolled into a social security program?)

15 posted on 08/22/2010 8:21:49 AM PDT by blam
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To: blam
Spend it while it's still worth something? (Or, before it's rolled into a social security program?)

I'm looking for something like, (401K moved by legislative fiat), this to be pushed by the lameduck Congress as their last ditch poke in the American eye for killing any chance for completion of the Obama socialist agenda and tossing their asses out.

That will cause an second American revolution.

16 posted on 08/22/2010 8:33:31 AM PDT by Popman (Obama. First Marxist to turn a five year Marxist plan into a 4 year administration.)
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To: blam

Everything they sell, practically, is made in China. And China will soon collapse economically and is seriously gearing up for war.

If cheap crappy imports from China aren’t as available plus may become more expensive (gas prices, plus a host of scenarios), what will they sell cheaply? Manufacturing is going to have to return to the US but it won’t happen overnight.


17 posted on 08/22/2010 8:59:23 AM PDT by little jeremiah
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To: little jeremiah
"Manufacturing is going to have to return to the US but it won’t happen overnight."

Probably not in my life time. I'm 66.

18 posted on 08/22/2010 10:27:28 AM PDT by blam
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To: blam

It’s going to have to pretty soon or people will be making their own shoes, clothes, cooking pots etc.

China’s on it’s way out/down/going to war.


19 posted on 08/22/2010 10:32:21 AM PDT by little jeremiah
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To: blam

I’m not much younger than you.


20 posted on 08/22/2010 10:38:30 AM PDT by little jeremiah
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