7jan2012-ANOTHER FUNNY NEWS-thistime from usa!

Investors Continue to Yank Money Out of Stocks


Published: Friday, 6 Jan 2012
1:44 PM ET Text Size By: John Melloy

Executive Producer, Fast Money & Halftime


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Investors yanked money out of U.S. equity mutual funds for a ninth-consecutive week despite a bullish 2012 outlook from Wall Street and a December rally that’s carried over into the New Year.

U.S. funds—not including ETFs —lost $1.1 billion in the week ended Wednesday, according to data from Lipper FMI. This follows a $1.7 billion outflow in the previous week. Investors put money into taxable and municipal bond funds instead, the data showed.

“Trends remained largely intact as we moved into the first week of 2012,” said Daniel Fannon, a financial analyst with Jefferies, who cited the data in a note to clients.

The S&P 500 [.SPX 1277.81 -3.25 (-0.25%) ] began 2012 with a 1.6 percent surge on Tuesday and is up 2 percent for the week. A better-than-expected jobs report added to the bullish tone Friday.


Wall Street strategists, on average, expect the U.S. benchmark to increase by 7 percent this year, according to a consensus calculation by Goldman Sachs. The market seers generally cite a strong domestic economy overshadowing the credit crisis in Europe. But apparently, their retail clients aren’t listening.
The continued outflows mean “folks set a mental level, thinking ‘please God if we ever get to this point, I will take the money and run,’” said Jon Najarian, co-founder of TradeMonster.com. “It also means we could have more people chasing the market higher if this move hits 1300 in the S&P 500.”

The index is up 19 percent from its intraday low for 2011 hit three months ago and was approaching 1282 in trading Friday.

U.S. Stock Funds Have Second-Worst Year


QBy Charles Stein - Jan 6, 2012 1:00 PM GMT+0800
U.S. stock mutual funds that invest in domestic equities had their second-biggest redemptions last year as record market swings sent investors to the perceived safety of bond funds.



Investors pulled an estimated $132 billion from mutual funds that invest in U.S. stocks, the fifth straight year of withdrawals for domestic funds, according to preliminary data from the Investment Company Institute, a Washington-based trade group whose numbers go back to 1984. Withdrawals reached $147 billion in 2008 when the Standard & Poor’s 500 Index fell 37 percent, including dividends.



Withdrawals accelerated in May and June amid concern that weaker European economies would not be able to repay their debts. They peaked in July as Congress debated whether to lift the nation’s debt ceiling. Those events, as well as lingering memories of the 2008 selloff and a subpar U.S. economic recovery, may all have contributed to investor discontent, said Russel Kinnel, director of mutual fund research at Chicago-based Morningstar Inc. interview.



“A lot of people remember they got burned so they are more sensitive to bad news than they were before,” Kinnel said in a telephone interview.



‘Bear the Pain’

Volatility increased in the third quarter as the U.S. lost its AAA credit rating at Standard & Poor’s and concern about the European debt crisis intensified. The S&P 500 moved 2.4 percent (SPX) on average between its intraday lows and highs, the most for any quarter since 2009. The Dow Jones Industrial Average alternated between gains and losses exceeding 400 points on four straight days in August, the longest such streak ever.



“Investors just can’t bear the pain, which sets the stages for an unwillingness to take risk,” said Christopher Blum, chief investment officer for behavioral finance at JPMorgan Asset Management in New York.



The redemptions from domestic stock funds have come from managers who pick equities in an attempt to beat market benchmarks. Actively-managed funds saw withdrawals from 2007 through 2010 while index funds attracted money in each of those years, Morningstar data show. The same pattern held through the first 11 months of 2011.



“People are convinced that active management has failed to deliver,” Geoff Bobroff, a mutual fund consultant based in East Greenwich, Rhode Island, said in a telephone interview.



Leaving Active Funds

Funds that invest in international stocks attracted about $6 billion last year, ICI data show, down from $58 billion in 2010. Taxable bond funds saw an estimated $141 billion in deposits, below the $230 billion they attracted the previous year. Municipal bond funds suffered withdrawals of about $12 billion. In 2010 they had $11 billion in deposits.



The ICI has released monthly flow data through November and weekly numbers through Dec. 28, which may be revised. Final numbers for December will be published at the end of January, according to the ICI.



Domestic equity funds captivated the American public in the 1990s, thanks to a stock market that rose at an annual pace of 18 percent a year and the well-publicized success of stock pickers such as Peter Lynch of Fidelity Investments. Lynch guided Fidelity’s Magellan Fund to gains of 29 percent a year from 1977 to 1990 compared with 15 percent annual returns for the S&P 500 index.



In the past 10 years the S&P 500 returned 2.9 percent annually, including reinvested dividends. Investors suffered double-digit losses in 2001, 2002 and 2008.



Better news on the U.S. economy and a resolution of Europe’s debt problems might inspire investors to begin a return to U.S. stock funds, said Blum. In the meantime those investors could be missing good opportunities.



“There is a risk to not owning equities,” he said.



To contact the reporter on this story: Charles Stein in Boston at cstein@bloomberg.net



To contact the editor responsible for this story: Christian Baumgaertel in Boston at cbaumgaertel@bloomberg.net



MY COMMENTS-YEAH!!ISNT THIS FUNNY?LOOK AT THE TIMING THE AVERAGE RETARD SOLD STOCKS-
 
WHEN DID THE AVERAGE RETARD "EJACULATED" ALL THEIR STOCK HOLDINGS OUT?IN JULY 2011!!!
 
HAHAHAHAHAHAHAHAHAHAHAHAHA
 
IF THEY HAVE READ MY BLOG,THEY WILL HAVE KNOWN IN FEB/MARCH 2011,I WAS VERY BEARISH AND WAS LOOKING FOR A 20% FALL IN STI AND WORLD MARKETS.DID I WAIT TILL JULY2011 TO "EJACULATE"?DID I WAIT TILL BAD NEWS IS ALL OUT THEN I "EJACULATE" MY STOCK HOLDINGS????
 
I "EJACULATED" ALL MY STOCK HOLDINGS IN FEB2011!!!!!!!HAHAHAHA THIS NEWS IS SO FUNNY.PLEASE READ MY FEB2011 POSTS FOR PROOF I WAS DAMN BEARISH ON THE STOCKMARKETS.I SAID ONLY FOOLS BUY FROM ME IN FEB2011.hahahahahaha
 
THE STOCKMARKET IS THE SAME AS PROPERTY AS BUSINESS.SOMEBODY HAS TO LOSE IN ORDER TO MAKE SOMEBODY WIN.STOCKMARKET,PROPERTY MARKET,BUSINESS MARKETS ARE ALL ZERO SUM GAMES.WAKE UP.RECENTLY SO MANY BOOKSHOPS IN SINGAPORE CLOSE DOWN,EG. BORDERS,PAGEONE.WHY?THE TECHNOLOGY COMPANIES GAIN AT THE EXPENSE OF THE BOOKSTORES BECAUSE NOW THERE ARE E-BOOKS.
 
JUST ASK YOURSELVES THIS SIMPLE QUESTION-WHY ARE WITHDRAWALS SO HUGE,2ND HIGHEST,BEHIND 2008,YET SP500 REMAIN FLAT FOR 2011??WHY???WHO HAS BEEN EATING UP THE "GOODIES"?
THE AVERAGE RETARD HAS ALREADY LEFT THE MARKET,NOW IT IS THE TIME TO PUSH UP,THEN AFTER STOCKMARKET SOARED,THEN THEY WILL RETURN AND BE TIED ANOTHER 20YEARS!!!!then they will complain again.PLEASE DO NOT RE ENTER THE STOCKMARKET AGAIN.

THE AVERAGE RETARD DESERVED TO GET BURNT IN THE STOCKMARKET.PATTERNS,CYCLES REPEAT AND REPEAT BUT AS AN ADULT, A FULLY MATURED ADULT,WHO LIVED SO MANY YEARS ON EARTH YET CAN FAIL TO LEARN REPEATED PATTERNS DESERVE TO LOSE.HOW CAN ANYONE,A FULLY GROWN MATURE ADULT, MISS OUT THAT 2009 EXACT PHOTOCOPY OF 2003,2010 EXACT PHOTOCOPY OF 2004,2011 EXACT PHOTOCOPY OF 2005 IN SP500.

if you cant see thru cycles, PLEASE QUIT THE STOCKMARKET AND NEVER RETURN.the stockmarket DOES NOT need your SMALL money to go up.the stockmarket can go up "ON ITS OWN".
 
TO THOSE WHO SELL IN may/july2011-YOU MUST HAVE BOUGHT SOMEWHERE IN 1999-2000,TIED UP FOR 10+ YEARS,NEVER EARN A SINGLE PROFIT.THEN WHEN SP500 RETURNED TO YOUR SAME 1200s levels,u sell ALL and VOW NEVER TO RETURN TO THE STOCKMARKET. you as an american,you have put warren buffett's teachings to shame!i know warren buffet is not 100% right BUT investing is simply "BUY WHEN MAJORITY IS AFRAID,SELL WHEN MAJORITY ARE GREEDY".
 
IT IS THE SAME AS PROPERTY MARKET.please look at china property now.dead as a mouse.a lot of china people are cursing the property market for making them lose their wealth.WHY IS THAT SO?
 
THE AVERAGE RETARDS WILL ALWAYS BE SUCKED INTO HUGE RISES,GET TIED FOR 10-20YEARS OF FLATTISH OR LOSING MONEY YEARS THEN THEY WILL "EJACULATE" AT LOW OR SAME PRICES THAT THEY BOUGHT 10-20YEARS AGO.this cycle WILL REPEAT because this retard QUIT,THERE COMES THE NEXT RETARD!hahahahaha
 
THANK YOU