Mutual Fund Bloodbath: Fifth Consecutive Week Of Domestic Stock Outflows Leads To $25 Billion In..

[girl gone mad]

Mutual Fund Bloodbath: Fifth Consecutive Week Of Domestic Stock Outflows Leads To $25 Billion In Cumulative Redemptions
http://www.zerohedge.com/article/mutual-fund-bloodbath-fifth-consecutive-week-domestic-stock-outflows-leads-25-billion-cumula

The deleveraging pain for mutual funds is never ending. Today ICI reported the fifth consecutive week of domestic equity outflows, which while not as bad as last week's unprecedented $13.4 billion in redemptions was still a massive $1.1 billion in outflows. This amounts to $25 billion in redemptions in the past 5 weeks alone, and increasing pressure for already cash-strapped mutual funds to accelerate liquidations of positions in a feedback loop. And if you have used leverage in this environment, good luck. Total 2010 outflows now amount to -$23 billion: how anyone can claim with a straight face that retail is in any way a factor for the market doing all it can to defend the 10k barrier is beyond comprehension. Once banks realize there are no reinforcements coming from the slow money brigade, watch for the selling to hit the afterburners as prop desks grasp that the first one out may be the only one not to lose it all.

[yourout]

1. Sounds like a double dip coming our way.

Till manufacturing jobs are brought back and people here can make a decent living our economy is going to suck.

[golfguru]

3. that will be difficult since

tax cuts to small business owners expire end of 2011. I don't think they will be
willing to invest more money when their costs will go up significantly.

[OllieLotte]

5. Large and small business is scared.

Even if they have a lot of money to put into the business and hire people, they aren't doing it.

[Name removed]

2. Deleted message

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[trof]

4. Yet another reason I prefer ETFs.