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Think back to 2007….If someone would have told you almost $600 Billion would be withdrawn from Domestic U.S. stock funds over the next six years, what would you have said to them if they then told you… the S&P 500 would be at all-time highs? Hmmm at the least!
At times like this when the Dow and S&P 500 is hitting all-time highs, it is common to wonder if too many people are invested in the markets? Is a decline ready to happen? Does the table above have something to do with the phrase…“this is the most hated rally ever?“
Stocks hitting all-time highs with outflows does make me question a lot of things…one of them being… what would happen to stocks if they would experience only part of the $1.3 Trillion of bond inflows have seen over the past six years?
WTF? For sure….Watch The Flows!!!