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Santoli: Investors making mistake tuning bull out

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.

Maybe it's faint, and many would say far-fetched, but there's a case to be made for stocks moving nicely higher. Investors, though, seem uninterested in hearing it.

Withdrawal of money from equity funds is no longer a reflex in response to sudden market drops, but something like normal, default behavior. Another $5.8 billion left stock mutual funds and exchange-traded funds in the latest week, according to Merrill Lynch, the sixth-straight week of outflows, all coming with stocks stabilizing a few percent from all-time highs.

The tally for the year: $96 billion withdrawn from equity funds or roughly 1.3 percent of assets under management. About two-thirds of that total have been added to bond funds.