Weekly Fund Flows

Wow, the weekly fund flows numbers were very interesting with an increase in outflows of stocks and inflows in taxable bonds.  Money flows represent the mount of money that is leaving (outflows) or entering (inflows) stock or bonds.  This week we saw -$5.569 billion in outflows in domestic stocks and $1.26 billion inflows into foreign stocks.  Bonds saw an inflow of $7.793 billion.  Figure 1 shows the bond relationship to stock flows.  

Figure 1

Figure 2 shows the flows for domestic and foreign stocks.  As you can see investors continue to flee the domestic stock market.  Again, you have to ask yourself, where is the money coming from that is propping up the U.S. Stock markets.  A total of $41.3 billion dollars have left the domestic stock market since the week of July 28th 2010. 

Figure 2

Figure 3 shows the flows into taxable and Municipal bonds.  Again, $7.1 billion dollars funneling into taxable bonds and $605 million into Municipal bonds.  Since the week of July 28th, $65.9 billion dollars has flowed into taxable bonds and $10 billion into municipal bonds.   

Figure 3