Date: Fri, 11 May 2007 03:57:51 -0500
From: darkness39@yahoo.com
Newsgroups: misc.invest.financial-plan
Subject: Re: money market question
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On May 11, 1:21 am, Will Trice  wrote:
> joetaxpayer wrote:
> > There is data for something called 'flow of funds'
> > the money moving into or out of mutual funds. Funny (in a pathetic, sad,
> > kind of way) that at the market peaked in 2000, money was pouring in.
> > Money poured out during 02 as the market bottomed.
>
> Interestingly, CNBC reported this morning that individual investors "are
> not putting money into the market."

Institutional flows are the biggest component of the market, I
believe.  There are a lot of pension funds and insurance companies and
family endowments, worldwide.

I presume this observation includes mutual funds?  In addition, there
are hedge funds, which could be institutional investors or individual
investors.

  If this means a zero flow of funds
> (i.e. inflows and outflows balanced), does this mean we're in an
> inflection point and the market is beginning to decelerate to a top?

The conventional wisdom (I've never seen this proven) is that
individual investors always have it wrong.  When they are buying
stocks, we are closer to the top than the bottom (1999).  When they
are selling stocks, we are close to the bottom.