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Source: Bianco Research
Despite the recent Goldman Sachs decree that this is the best possible time to be buying equities (Calling All Muppets), the public is not participating.
There are lots of folks who are critiquing the Goldie call, but no one quite mocks the Über bullish gestalt quite like Zero Hedge:
“Goldman screams it is a generational buy, Larry Fink goes all in stocks, Notorious BIGGS is 90% long, anchors on comedy-financial fusion channels are channeling the producer in their earpiece and screaming at the teleprompter to “sell bonds and buy stocks”, even as stocks are at their highest in nearly 5 years and… what happens? In the latest week, ICI just reported that domestic equity retail funds just saw another $2.9 billion outflow, the 4th consecutive in a row, and the 23 of out 27 outflows during the entire parabolic blow off top phase the market has undergone since October, and instead put another $9 billion in fixed income funds “soaring” yields be damned.
What does this mean? Probably that the stock ramp is about to get uber-parabolic for the simple reason that this is the only thing left in the status quo’s arsenal – to keep doing the same old same old, hoping for a different outcome, because this time it’s different. Only this time the dumb money either doesn’t have the cash to burn, or just doesn’t want to participate in a rigged, corrupt, centrally-planned market. Whatever the case, the Primary Dealers and the Fed will just have to keep hoping more central banks pull a Bank of Israel and sell the hot grenade axes to them, since Joe Sixpack is done being the “dumb money.”
Josh blames ETFs for killing the mutual fund — that might be a factor as well . . .