Lipper Reports Biggest Equity Outflow Since 2002

[Rajiv]

Lipper Reports Biggest Equity Outflow Since 2002

Lipper FMI reports that investors pulled $5.3 billion from equity mutual fund during the past week, the largest outflow since March 2009. Including ETFs, the outflow was a massive $16.7 billion, the largest since 2002. And now, back to your regularly scheduled futures ramp, where courtesy of Ben Bernanke's bizarro supply-demand curve, selling begets higher stock prices.

[Master Shake]

Re: Lipper Reports Biggest Equity Outflow Since 2002

Lipper Reports Biggest Equity Outflow Since 2002

the largest outflow since March 2009.

That would be the March bottom, no?

Just sayin.

[Rajiv]

Re: Lipper Reports Biggest Equity Outflow Since 2002

the largest outflow since March 2009.

That would be the March bottom, no?

Just sayin.

Yes That would be correct if the ETFs are not included -- including the ETFs makes it the largest since 2002

[Ben]

Re: Lipper Reports Biggest Equity Outflow Since 2002

Private investors yet again sell low and buy high

[Anon21456]

Re: Lipper Reports Biggest Equity Outflow Since 2002

2002 and march 2009 were almost bottoms. Seems like this correction might be a good entry point for a long trade, if you believe in that indicator.

[pianodoctor]

Re: Lipper Reports Biggest Equity Outflow Since 2002

I'm not sure if I am understanding whether or not the Lipper number is truly significant. (According to a Bloomberg chart) March '09 opened on March 2 with the Dow at 6763. The market bottomed on March 9 at 6547, a decline of 216 points or 3.19% in one week. From then on we've been in "recovery mode" till very recently.

Contrast with October '08 when the market began the month Oct 1 at 10831 and hit the October low 10/27 at 8176, a drop of 2655 points or 24.5%. If you are going by single-week declines, between Oct 1 and Oct 7 the decline was 1384 points or 12.75%, approx 4X the decline of March '09.

The last week of May '10 saw a rise in the market, so maybe they are referring to the week of the 17th? That week witnessed a market decline from 5/17 at 10625 to week's bottom of 10068, a decline of 557 points or 5.25%

So I'm not sure if this Lipper number signifies anything in particular. To me, it just sounds like it's saying it's consistent with the fact the market moved downward by a quick and notable amount for the first time since March '09. Which is something we already know.

Or am I misunderstanding the significance of the Lipper stat?

[harset]

Re: Lipper Reports Biggest Equity Outflow Since 2002

Private investors yet again sell low and buy high

This is an Indian perspective:

Small investors here are represented by individuals holding less than Rs 1 lakh worth of shares in a company. And the data is for 87 of the BSE-100 companies that were listed in June 2006. As seen from the chart, the stake has come down a bit over the years - from 9.5% four years back to 8.3% currently. Interestingly, the sharp plunge can be seen just before the markets cracked in early 2008. Apparently, this was when small investors were a worried lot as against the big guys (especially the FIIs) who loaded up on stocks only to see their money vanish in the crash that followed. And interestingly, small investors have cut back on their stake after raising it again just before the bull-run started in early 2009. Smart guys indeed!



* Small investors are represented by individuals holding less than Rs 1 lakh worth of shares in a company;

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