Responding to the big runup from the March 9th low to the highs last Friday, mutual funds are getting big inflows, even as the markets have had a tough time this week:
Equity fund inflows
- May to date: $17.8 b inflow
- April: $10.4 b inflow
- March: $16.4 b outflow
- February: $14.3 b outflow
Source: TrimTabs.com
This happens with a dulling regularity: retail investors are usually cautious and tend to put money in only after a notable runup, or take money out after a notable drop.
The reason stocks have struggled this week (S&P 500 down 4.5 percent) is the huge supply of secondaries that have come on the market beginning last Friday.
New offerings:
- May to date: $38 b
- April: $24 b
- March $8 b
- February: $4 b
Source: TrimTabs.com
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