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Recent Fund Flows - U.S. Hybrid fund inflows hit 27 week high. Equity funds suffer outflows.
I think my question becomes when does retail start putting money into funds again - "retail will chase", "it just takes time", etc - yadda yadda yadda - at some point it becomes apparent that there are people who have just left (or swung entirely the other way into fixed income.)
I'm absolutely fascinated by the level of continued outflows. Will these people come back who have left sometime in the future? Yeah, probably, but at this point, who knows when? It's an incredible shift in mentality/psychology that really shows no sign of changing.
Reply to @scott: Dunno - probably related to human tendency to always "fight the last war". Also - high unemployment and continued loss of good paying union jobs may have lot to do with it ... Interesting though - if you wanta fight last war, you'd stay away from high yield - got creamed in '08. But, that doesn't seem to be the case.
Comments
http://ici.org/research/stats/flows/flows_08_29_12
I think my question becomes when does retail start putting money into funds again - "retail will chase", "it just takes time", etc - yadda yadda yadda - at some point it becomes apparent that there are people who have just left (or swung entirely the other way into fixed income.)
I'm absolutely fascinated by the level of continued outflows. Will these people come back who have left sometime in the future? Yeah, probably, but at this point, who knows when? It's an incredible shift in mentality/psychology that really shows no sign of changing.