In the week ended Wednesday, stock funds had net cash inflows of $1.7 billion, according to AMG Data Services. Money-market funds pulled in $7 billion. Taxable bond funds had net outflows of $411 million, but municipal-bond funds gained $42 million. Results include exchange-traded funds.
Note: We’ve looked at Fund Flow several times over the past few years: Earlier this year on January 26 (A Promising Start, But . . .) and in the beginning of 2004: February 23 (Structural Decay) and February 26 (Reluctant Buyers on Strike at Nasdaq).
Note that at bubble peaks, fund flow gets excessive.
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Source:
Cash Keeps Rolling In
Barrons, MONDAY, MARCH 28, 2005
CASH TRACK
http://online.barrons.com/article/SB111179686877590076.html
See also
Trimtabs
http://www.trimtabs.com/main/mffresearch.html
AMG Data Services
http://64.168.92.5/PGHOMEPAGE
Barron’s has an article today (investor’s soapbox) in which the writer says the retail investor is returning to the market, and uses this observation as basis for predicting a 10% rise in ’06. Is it true that fund flows are increasing (and where can I check that)? And does fund flow drive the market up? Thanks.