Retail investor imposes further sanctions on the U.S. stock market and withdraws $7.596 Billion

The retail investor imposed additional sanctions on the U.S. equity market by withdrawing another $7.596 billion during the week ending 9/1/10. Clearly the retail investor no longer watches CNBC and does not realize this is a great time to buy equities.

Washington, DC, September 8, 2010 - Total estimated outflows from long-term mutual funds were $4.31 billion for the week ended Wednesday, September 1, the Investment Company Institute reported today. Flow estimates are derived from data collected covering more than 95 percent of industry assets and are adjusted to represent industry totals.

Equity funds had estimated outflows of $9.54 billion for the week, compared to estimated outflows of $4.60 billion in the previous week. Domestic equity funds had estimated outflows of $7.60 billion, while estimated outflows from foreign equity funds were $1.94 billion.

Total Domestic Equity Flows/Week Ending
-$7.596 billion 9/1/10
-$4.311 billion 8/25/10
-$2.712 billion 8/18/10
-$2.077 Billion 8/11/10
-$2.122 Billion 8/4/10
-$11.120 Billion for the month of July 2010
-$7.519 Billion for the month of June 2010
-$19.066 Billion for the month of May 2010

Since April 30th, 2010, $56.523 BILLION has been withdrawn from Domestic Equity Funds.

Charts courtesy of ICI and Zero Hedge.

Zero Hedge Commentary

Year to Date the total pulled out is a whopping $62 billion, incidentally with both inflows and the market having peaked at the same time in April. On thr other hand, if the market were tracking mutual fund redemptions (whose net liquidity is now down to just 3.5% of assets and getting worse by the day), the S and P would be in the 900 range. Once the destructive impact of the Fed's daily meddling in the stock market is eliminated, it will get there. The longer stocks are artificially held up at current artificial levels, the greater the crash when reality and anti-gravity finally meet.