After ICI just revised the last two data points of 2010 which were originally inflows, even if modest, to one outflow and one minimal inflow, more importantly it has disclosed the first flow of funds in 2011. And as we predicted looking at last week’s inflows in taxable bond funds, the year starts with an equity outflow, confirming that the retail lemmings are really not as stupid as the Fed and the Primary Dealers believe they are. And what an outflow: at $4.2 billion, this was the largest one week outflow since early October! And yes, bond inflows have resumed as we speculated, even as the scariest indication that things are really not well persists: namely that outflows from that next domino to drop, municipal bond funds, accelerate. And when munis go, it is either a wipe out or QE3. Our money is on the latter. Oh yes, for those who have questions on who may have been buying stocks now that it is confirmed that the inflow was a fluke, please address them to Mr Frost, 9th Floor, Liberty 33, the 10th Circle of Hell (reserved for legendary market manipulators).
And what has to be the funniest chart in the world:
via 2011 Starts With A Bang: $4.2 Billion In OUTFLOWS From Domestic Equity Funds | zero hedge