Stock prices jumped by 2% last week, and have reached their 2007 highs. Retail investors? Fund flows indicate they are still on strike --- and missing the party. As usual.
Below is an email I received from Morningstar. So, let's see. The stock market has climbed back to its 2007 highs last week and yet investors, retail investors, continue to yank money out of stock funds. Amazing.
"Morningstar today reported estimated U.S. mutual fund asset flows through August 2012. Long-term mutual fund inflows were just $20.7 billion in August, as open-end U.S.-stock funds tallied yet another month of outflows, losing $14.3 billion.
"Additional highlights from Morningstar’s report on mutual fund flows: