26th Sequential Week Of Outflows From Domestic Equity Mutual Funds

 

After last week's minimal outflow of "just" 218 million, Bob Pisani could already taste victory and preemptively claimed that there already were inflows into stock mutual funds. Luckily, today's ICI data puts an end to yet another piece of blatant CNBC propaganda. For the week ended October 27, ICI registered a $2.9 billion outflow from domestic equity mutual funds, making 26 straight weeks, or half a year, of neverending outflows. This brings the total to $84 billion. But fear not: now that the Fed will be buying $110 billion worth of stock via the Primary Dealers, courtesy of over 100 POMO operations over the next 8 months, it is more than clear who will be buying any and all stock in the stock market. In the meantime, the HFTs, the PDs, and Brian Sack will be riddled with so many hot potatoes they need to dump to idiot retailers (and good luck dumping that GM POS to retail investors), Wall Street will soon become the world's biggest potato farm.


Two thing  are now clear: i) mutual funds will very soon run out of cash unless the Fed manages to keep asset prices rising higher than outflows can redeem capital, and ii) the Fed will never stop monetizing everything. After USTs, the deranged madman will buy MBS, then ETFs, then stocks, then Plasma TVs, then hookers, then lapdances, then toenail clippers, then toilet paper, then the most worthless thing of it all- dollars themselves, and then, finally, it will be all over.