And Another Week Of Selling: “In 2016, Equity Funds Have Lost The Largest Ever Outflow For The Asset Class”

For many weeks in a row now we have been asking, mostly jokingly, how with everyone else (both retail and “smart money”) selling, and with stock buybacks sharply lower in recent months, is the market higher. Specifically, who is buying?
This question is no longer a joke. After this week’s 17th consecutive outflow by “smart money” funds (mostly on the back of surging hedge fund redemption), moments ago we got the latest Lipper fund flow data. It was, as BofA put it, “unambiguous risk-off weekly flows.”
As BofA also put it: “Equities continued to experience outflows and lost $3.32bn (-0.1%) last week, their 4th consecutive decline. Year-to-date, equity funds have lost $58.6bn (-0.6%), the largest ever dollar outflow in any 22 week period for the asset class”
And yet, despite record retail outflows, despite record smart money selling, despite slowing buybacks, the S&P is not only higher on the year, but just shy off all time highs. At this rate the central banks will really need to reassess their strategy before they lose what little credibility they have left.

This post was published at Zero Hedge on 05/27/2016.