Retail investors continued to flee equity mutual funds for an unprecedented 4 years in a row . . .

Retail investor inflows and outflows from mutual funds are classic contrary indicators.  Retail investors are the “wildebeests”.  2011 saw the 2nd highest rate of equity fund withdrawals on record.  It is no wonder that the equity markets had a tough year in 2011.  The withdrawals had the greatest impact on smaller cap stocks as Aberdeen is only too painfully aware.  The good news is when withdrawals reverse to net additions, overall equity prices can experience above average appreciation.  The strong gains in 2009 were accomplished when the rate of equity fund withdrawals slowed to just $11 bil.  Jeb Terry, Sr. January 2, 2012

Aberdeen Investment Management – a guide service for micro-cap technology investment

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