Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Depending on how much you think retail purchases of the market are a contrary indicator this could be an important data point. The last time mutual funds saw such inflows was the week of April 20th, 2011. Within a week the market essentially topped for the year. Of course history need not repeat, but it is something to be aware of.
Domestic equity funds raked in about $1.9 billion in the week ended Feb. 8, according to the most recent data from the Investment Company Institute, released yesterday afternoon. The weekly net inflow was the largest since the week ended April 20, 2011. Domestic stock funds have experienced net inflows during three of the first six weeks of the year, highlighting how risk appetite has started to percolate in the early part of 2012. These funds haven’t had a full month of inflows since April, according to ICI.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
