Something to Think About ...

Discussion in 'Trading' started by skerbitz, Jul 23, 2002.

  1. skerbitz

    skerbitz

    From CBS Marketwatch :

    Equity mutual funds bled nearly $14 billion in June -- the third largest monthly outflow on record and the first since September. As shares plunge deeper, the exodus from stocks by fund holders appears to be mushrooming.

    "Since June 20, we've seen $42 billion that we estimate left," said Charles Biderman, president of Santa Rosa, Calif.-based fund tracker Trim Tabs -- who estimates the July pace at $62 billion in outflows.

    The group, which tracks 90 fund families, representing about 15 percent of all equity fund assets, reported a weekly record $19 billion alone leaving stock funds over the five-day period that ended Wednesday.


    ... Assume the average stock price is what ??? $20-$40 ???

    $19 B = somewhere between 500 million to 1 Billion shares being dumped on the market every week !!!

    Thats about roughtly a full days worth (?) for either the NAZ or the NYSE every week.

    It's a slow motion collapse as each of the 'optimists' dump their buy and hold strategy and exit the market.

    Incidentally bond fund assets are mushrooming ... until the housing bubble collapses :)