Dimon Sparkles - But Is It Enough?
Jamie Dimon's excellent speech helped move indices into positive territory, but it's been a disappointing day.
Is the forced selling over? We are trying to put together our first two-day rally in about a month, but it's not easy.
The response on the second day has been feeble so far: volume was lighter than yesterday at the open, then (stop me if you've seen this movie) volume PICKED UP as financials began to be sold off mid-morning.
Technicals aside, the most important thing is to stop the bleeding and the forced selling. Here's some sobering statistics: according to TrimTabs, from February 25th through Monday, March 9th, there was an estimated $56 billion in outflows from U.S. equity mutual funds.
Is that a lot? Yes. By comparison, last year—a miserable year for mutual funds—there were total outflows of $245 billion from all U.S. equity funds.
In other words, in two weeks we saw almost one-fourth of the total outflows we saw all of last year.
Gads. We simply can't keep doing that.
By the way, there's $3.4 trillion in assets currently under management in U.S. equity mutual funds (there's $1.6 trillion in bond funds).
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