Bye bye bonds

According to the Investment Company Institute, investors pulled more than $3.3 billion from bond mutual funds and ETFs in the week leading up to November 4. That's the first outflow according to this data since April, ending one of the longest streaks of inflows in 23 years. We've already seen that investors have greatly preferred bonds over stocks, so there's a lot to unwind here. But in a rare piece of good news, the Backtest Engine shows that TLT enjoyed an average gain of 3.6% and was higher 78% of the time after any week when bond funds lost $3 billion or more.