Friday, January 2, 2009

Mad as Hell or Just Fed Up?

The Financial Times is reporting that the numbers for 2008 mutual fund flows are in and they are ugly. Investors pulled a net $320 million out of U.S. mutual funds last year, a record.

Investors always sell at the bottom but big numbers are in now way proof that we have reached a bottom. If you like me expect unemployment to go significantly higher, you can't be overly constructive on fund inflows (new money) overall to get stocks going. It is at least a strong indication that expectations are low and many don't care.

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