Fund Flows as indicator (+/-) of market behavior

[John0019]

Quick read on Fund Flows in and out not being what some thought. Not saying I would base a lot on this, but differs what seemed logical in my little mind.

Link:
https://www.marketwatch.com/story/w...say-about-the-stock-markets-future-2020-02-11

Quote from article:
"All told, a net $444 billion was pulled out of the U.S. equity funds and ETFs over the past decade. During that period, the S&P 500 produced a cumulative total return of 257%, equivalent to 13.6% annualized."

 

[VanWinkle]

Article seems to make conclusions based on flimsy evidence. They may be right, but they need more information to substantiate their claim.

VW

 

[MRG]

Later in the article:

"They found that mutual fund inflows have, at most, only a temporary impact on the stock market. That is just another way of saying that their impact is quickly reversed. How quickly? Within 10 trading days."

The data is from the end of year. Other than an anomaly from what folks want to see I'm not sure what the authors point is.

ETA: More information, statistics, and fun about the mutual fund industry can be found here:https://www.ici.org/