Outflows continue
The exodus from equity funds (both mutual funds and ETFs) has been a theme for months and it's not letting up. The Investment Company Institute reports that domestic funds suffered a nearly $17 billion outflow last week, which is the 11th-largest one-week outflow in more than 15 years. Fund flows are not necessarily a consistent contrary indicator, especially when looking at just one week. The Backtest Engine shows that a weekly outflow of more than $15 billion preceded a gain in the S&P 500 over the next 3 months only 45% of the time.
