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The 5th largest monthly U.S. equity funds outflows
According to Charles Biderman, CEO of TrimTabs, U.S. equity funds saw their 5th largest monthly outflows last month. In May, U.S. equity funds saw $30 billion in outflows, topped only by outflows in July 2002 ($49 billion), October 2008 ($47 billion), January 2008 ($36 billion), and September 2008 ($34 billion). All of them occurred in bear market. What will happen this time? Time will tell. I list the mutual fund cash level chart again. You can see that mutual fund cash level is at at record low thanks to Fed zero interest policy. June is end of 2nd quarter. These fund managers have to worry about client redemptions. This will put more pressure on stock market. For these long only investors, you really need to hedge your position for more downside risk.
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