Sunday, August 7, 2016

Market Exodus

Charles Payne

Market Exodus
Maybe it’s a gut feeling based more on a lack of confidence in the economy and a very dramatic race for the White house; maybe it’s concerns about the Fed hiking rates. Maybe its general worries; selling begets selling that further begets more selling.
Coming into the week, investors were selling equities hand over fist. In fact, according to Investment Company Institute (ICI), there were outflows of $13.4 billion in equity exchange-traded funds (ETFs) and $3.0 billion in Funds. Altogether, the past five weeks before this week saw more than $50.0 billion in equity outflows.



Fund Flows
ETFs
May 4Jun 27Jun 20Jun 13Jun 6
Total-13,397-3,179-4,143-3,464-622
Domestic-12,858-1,296-3,283-2,525-261
World-539-1,903-860-938-3611
Fund Flows
Funds
May 4Jun 27Jun 20Jun 13Jun 6
Total-3,008-8,122-3,931-4,632-5,836
Domestic-2,359-8,681-3,145-4,327-5,281
World-649-2,441-785-306-555
I think people are fooling themselves if they think this market is reacting to good news, even if retail sales and consumer confidence are much better than expected. There is an uncertainty that’s never really gone away throughout the entire recovery; it just becomes more pervasive from time to time.