Economic Charts

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Thursday, December 16, 2010

Weekly Fund Flows

The week ending 12/8/2010, saw additional outflows from Bonds (both Taxable and Municipal) and domestic stocks.  Foreign flows continued to see money flowing in.  Flows for Stocks and Bonds overall were negative as Domestic outflows outweighed Foreign inflows.
Figure 1

As usual with billions flowing out of Domestic stocks per week as you can see in figure 2, you have to wonder where does the money come from that is elevating the stock market (FED Printing press and the PPG or primary dealers? It seems logical).
Figure 2

Bond flows continue to show signs of stress as Taxable bonds join the sell off that municipal bonds started the week ending 11/10/2010.  More worrisome is the municipal bonds with outflows continuing, it leads you to wonder if municipalities will have enough or be able to get enough to float their budgets.  As I don't track bond auctions I don't know how much they are looking for and how much they are falling short, this would be a great statistic to get.

Figure 3

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