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Fink Had Stock To Sell

It is small wonder mom-and-pop investors are showing no love for U.S. stocks for a fourth consecutive year.

Not only has the U.S. economic recovery remained fragile, but the so-called “headline risk” is dominating investor psyche again…

But it has been clear—to some of us, at least–that mom-and-pop investors threw in the towel a while ago.

And looking to the pros for guidance in this time of madness may not be of much help either.

Consider that Laurence D. Fink, chief executive officer of BlackRock Inc., the world’s largest money manager, said in February that investors should have 100 percent of investments in equities because of valuations and higher returns than bonds.

via It’s Baaaack…The madness of Wall Street | Unstructured Finance.
Fink is a shill who obviously had stock to sell. Lots of it. So he went on CNBS and sent out free “research” telling everybody to buy so that he could unload his stash. In Wall Street parlance, this is called “distribution.” Over at Capitalstool.com, we call it “disturbation.”

Meanwhile, Ma and Pa Sixpack smartly continue to run away, run away. Only it’s not because they are smart. It’s because they need the cash to live. So much for Dr. Bernankenstein’s monster, ZIRP, boosting the market and the economy. It’s forcing folks to liquidate whatever they can. I call it Bernankecide, the mass financial genocide of US elderly retirees and savers.

Meanwhile here’s how they run away.

Equity Mutual Fund Flows- Click to enlarge

Equity Mutual Fund Flows- Click to enlarge

Fund Flows

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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