The divergence between asset prices and their fundamentals is only matched by the divergence between sentiment among active managers and all-time highs in the SPY.
The latest ICI data show that a net $26B was pulled out of long-term, US-focused stock mutual funds in the week-ended August 3rd. ICI has now recorded 23 straight weeks of outflows from these funds, for a total of ~$100B. It compares this to the $170.7B that left such funds for all of 2015. In the past 17 months, ICI has recorded only four weeks of net inflows for such funds. The Fed is hell-bent on making ETF distributors and robo-advisors out of all of us.
Who will fight back against such tyranny?
Editor's Note: The snippet above is from a note written by the Hedgeye Macro team and sent to subscribers this morning. Click here to learn more.
