October 26, 2008 at 3:26 PM
Posted by Thomas Catino
The trend of mutual fund flows hasn’t looked this bad in quite a long time. But the encouraging news is that in the past two weeks, after seeing outflows peak at $43.3 billion during the Oct. 2-8 period which saw the Dow lose 14.5% in value, fund outflows have significantly decreased as we approach the end of October, a month typically associated with the height of hedge fund redemptions. In fact, it’s the first time since July that there has been a back to back weekly drop in the dollar amount of stock mutual fund outflows. Though outflows could pick up towards year end and things are still as bleak as ever with stock mutual funds not seeing a net inflow of money since the June 12-18 period, this nonetheless provides a glimmer of hope for this market.
* Outflows for stock mutual funds domestic, international recorded in billions
Source: TrimTabs Investment Research
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