Wednesday, December 7, 2011

Investors taking money out of the markets despite recent market gains

Last week, the stock markets rallied for more than 700 points worth of gains after the Thanksgiving holiday, and Federal Reserve intervention in Europe.  However, when you look closer, you will see that the majority of trades were done by insiders, and algorithmic computers. A new report out today shows that more Americans and retail investors actually pulled their money out of the markets, at a pace that was greater than anytime before the S&P Downgrade of the US.

As if we needed another confirmation that the sad joke of a market has now succeeded in driving virtually everyone out courtesy of precisely the kind of bullshit we saw in the last 30 minutes of trading today, here comes ICI with the latest weekly fund flow data. It will not surprise anyone that in the week in which the S&P rose by a whopping 8 points on absolutely nothing but more lies, rumors and innuendo, US retail investors pulled a whopping $6.7 billion from domestic equity funds: the most since the week after US downgrade when a near record $23 billion was withdrawn. Only unlike then when the market bombed, this time it simply kept rising, and rising, and rising. - Zerohedge

Picture courtesy of Zerohedge

As I recently stated on the Angel Clark radio show last weekend, retail investors are NOT buying into the stock markets, and all that is left are insider brokerages using FED and PPT money to prop a dying horse.


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