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Mutual Funds Are On A Tear

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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