Mutual Fund Flows indicate Investor Indecision – Paul Price – Market Shadows

This is a syndicated repost courtesy of MarketShadows. To view original, click here.

Since late May, when interest rates started spiking, there have been more than $78 billion of net redemptions from bond mutual funds. Nobody seems convinced about what to do with the money withdrawn.

Caution- Mass Confusion

Click here to try the Professional Edition for 30 days risk free.

Only about $11.7 billion of new net money has flowed into equity mutual funds. That means the bulk of the money taken out still sits in money markets and demand deposits.

New all-time records in the broad averages have not yet brought ‘mom and pop’ back into stocks.

Rotation of money

There is still plenty of room for the rotation of fixed income money into shares.

The bull market in stocks will not end until there are good alternatives.

Share!Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

The Wall Street Examiner Professional Edition keeps track of the machinations of the Fed, Primary Dealers, the US Treasury, other central banks and a whole cast of market actors as they drive the markets. Try the Professional Edition risk free for 30 days!