If you think “way” back to 18 hours ago, we suggested that you might want to pour out a little liquor for all the people who helped funnel $40 billion into U.S. equity funds in January because their timing left something to be desired.
Here was the tweet:
pour out a little of your 40 oz. for the people who poured $40 billion into U.S. equity funds last month. pic.twitter.com/mKmMygtMtG
— Heisenberg Report (@heisenbergrpt) February 8, 2018
We also made a “subtle” prediction. To wit:
also, expect them to pull that shit right back out.https://t.co/il6Sk78k3B
— Heisenberg Report (@heisenbergrpt) February 8, 2018
Well guess what? “Screw you guyz, I’m goin’ home” was indeed the mantra in the week through Wednesday because “investors” (and the scare quotes are there for a reason) jerked nearly $31 billion from global equity funds in the week ended February 7, according to EPFR. That’s a record.
Japanese and EM shares saw inflows of $2.4 billion each, but that was dwarfed by the $33 billion that U.S. equity funds hemorrhaged.
Aaaand SPY:
Total bloodbath in $SPY w/ $23b in outflows in the past WEEK alone, it is now -$5b YTD. Brutal. Even inflow machine $IVV is starting see a little red.. pic.twitter.com/AMymctmYHV
— Eric Balchunas (@EricBalchunas) February 9, 2018
So it would appear to me that nearly all of what went into U.S. equity funds in January came out in the first week of February as U.S. stocks careened into a correction and as the short vol. trade blew up, turning former Target managers-turned millionaires into former millionaires-turned Target managers.
We said it yesterday and we’ll say it again today, the “morons were massacred.”
Additionally, that kinda, sorta suggests that in the event this gets materially worse, you won’t be able to count on the “fundamental”/retail bid. Apparently, these folks don’t really have the balls for two-way markets…
