Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to

Also in

Investors Go Home ... Should You?

Friday, August 28, 2015
Money and Markets
You can also access this issue on our website.
Numbers Show Investors Taking Their Ball and Going Home ... Should You?
Market Roundup
Dow -11.76 to 16,643.01
S&P +1.21 to1,988.87
NASDAQ +15.61 to 4,828.32
10-YR Yield +0.018 to 2.186%
Gold +$11.20 to $1,133.80
Oil +$2.85 to $45.40

By Mike Larson

This summer, investors are taking their ball and going home.

They’re not just selling stocks. They’re not just selling bonds. They’re selling everything … for the first time since the market disaster of 2008.

That’s the damning conclusion of research provided by Credit Suisse, as chronicled in this Bloomberg story. The firm estimates everyday American investors yanked $6.5 billion from stock funds in July, as well as $8.4 billion from bond funds. Then they yanked another $1.6 billion and $8.1 billion, respectively, in early August.

This is NOT ordinary behavior. Typically, investors will sell stocks in times of turmoil and move to bonds for safety. Or they’ll sell bonds when inflation and growth is picking up, and shift money to stocks to generate greater profits.

But in 2008, disgust with Wall Street and the capital markets in general grew to such a level that investors dumped everything. Now, in the wake of increasingly turbulent markets from New York to Shanghai and everywhere in between, they’re doing it again.

Separate research from Bank of America Merrill Lynch suggests a stunning $19 billion was yanked from equity funds on Tuesday alone That’s the most in any single day since late 2007.

Investors have yanked billions from stock and bond funds in the past few months.

You can look at this data in one of two ways. As a short-term, contrarian timing indicator, you can say the extreme investor panic may mark a temporary low. And sure enough, markets bounced sharply on Wednesday and Thursday. I anticipated something like that, taking large profits on inverse ETFs and put options in my trading services on Monday.

But as a longer-term indicator, I think these figures are troublesome. They dovetail nicely with the other fundamental and technical signals I’ve been talking about all summer, the ones that suggest we’ve entered an entirely new market environment.

Gone are the low/no-volatility, monetary morphine-driven “autopilot markets” we’ve had for the last 6 1/2years. Now, central bankers are losing the tenuous control they had of investor psychology and economics. That means many investors will be left on their own, with only lousy, conventional Wall Street “wisdom” to lead them astray.

You won’t be one of them though. You have Money and Markets to give you unbiased, timely, generalized advice. I also have my much more detailed Safe Money Report with specific “buy” and “sell” recommendations and much more detailed guidance.

“But as a longer-term indicator, I think these figures are troublesome.”

Unlike most of Wall Street, by the way, I wasn’t just sitting on my keister this summer and hoping things would magically get better in Safe Money. As things started coming unglued a few months ago, I was actively selling down exposure and raising cash — BEFORE markets went to heck in a hand basket.

Bottom line: It is a new market and a new paradigm. And while most of Wall Street hasn’t gotten wise to that yet, I will do absolutely everything in my power to make sure you stay ahead of the game!

In the meantime, let me know what you think about these outflows. Are you one of the American investors who is dumping stocks and bonds, and if so, why? What does that say about where markets are headed this fall and beyond? Let me hear from you over at the Money and Markets website.

Our Readers Speak

Is the market turmoil we’re seeing the inevitable result of massive debts coming due? The consequence of bad policy over the past few years? And what should you do about it as an investor? Those were the topics you were discussing over at the website.

Reader Mike S. said the lack of proper banking regulation is setting the stage for more market turmoil, offering this view: “Thank You for pointing out how high the margin levels are in our banks, as they are also trading with our savings deposits. Back before 1999 when the geniuses removed Glass-Steagall, our savings were safe as there were two kinds of banks: Saving Banks and Investment or Commercial Banks.

“Now the runaway bankers are making bets not only with their funds, but with ours. This will not end well, unless both the Democratic voters and the Republican voters start calling their Congressmen and women and demand the reinstatement of Glass-Steagall. Until that happens, a repeat of 1929 and 2007 is right around the corner, in my opinion.”

Reader C.W. said post-recession policies should have been better calibrated in 2008-2009, and if they had, we’d have a different economy today. His take:

“Keynes did not fail. Politicians failed. Applied correctly, Keynes works. As a previous submitter said, ‘Where would we be if the stimulus had been given to the populace? Student debt should have been paid off in full, so household formation could continue and all mortgages should have been reset to 3.5%, 30-yr fixed.

“Those two moves would have reset the U.S. for growth and allowed the free market to take care of the rest. But so many right wingers hate Obama that no logical approach like that would have made it.”

Speaking of debt, Reader Stu said: “Pretty scary stuff about the amount of margin debt out there. Not to be forgotten is the excessive amount of student debt, the huge auto loan debt bubble, stupendous credit card debt, and the indebtedness list goes on and on.

“Oh, and lest we forget the elephant in the room, the government’s U.S. $18.5 trillion debt, and of course those hundreds of trillions of unfunded liabilities (social security, etc.).”

So what should you do about it? Look for advice away from Wall Street, according to Reader Didi. She said:

“If you watch CNBC, every fund manager and their mother can’t stop saying: ‘Invest for the long term’ — Probably so that the market doesn’t bust their leveraged trades.”

And Reader Fred151 said we should all be prepared for more turmoil in the months ahead. His opinion:

“The rebound of the past two days is just a temporary reprieve. Certainly within the next few days, this market will be going back down in a very vicious manner.

“This bear market is ready to rock and roll. And unlike 2008 when the federal government was in fair shape and able to help, this time, it is going to be horrible. Obama has put us into so much debt that there will be no help for those on the margins.”

I appreciate all the feedback. Personally, I believe our problems stem from a combination of lousy regulatory policy, too much debt with too little income to support it, misguided stimulus, and wretched monetary policy. Many of the solutions we’ve been offered – like almost a decade of zero interest rates and QE – haven’t worked to turbocharge the economy, yet we keep getting more of the same from the “experts.”

But the real world and the lackluster global economy seems to be intruding on the fantasyland markets now. That means we’re in for much more volatility and tumult over the next couple of years than we’ve experienced over the last several.

More thoughts on these topics or others? Then don’t let them fester; share them at the website using this link.

Other Developments of the Day

BulletQuit your whining and get going already. That’s the message from international officials to the Federal Reserve, according to the Wall Street Journal. Several are advising the Fed to just go ahead and start hiking rates at its September 16-17 meeting rather than keep kicking the can down the road.

BulletMining and materials stocks have been getting crushed in the past year by the global economic slowdown. But legendary financier Carl Icahn apparently thinks Freeport-McMoRan (FCX) can turn things around with a little help. He revealed that he took an 8.5% stake in the copper, gold, and energy producer, and will pressure the company on cost, production, and pay issues.

BulletDesperate to escape political and economic turmoil at home, waves of migrants are trying to gain access to Europe by air, sea, and land. Politicians are struggling with the migrant crisis and in the meantime, an increasing number of immigrants are winding up dead.

The latest tragedy struck overnight when 71 migrant bodies were found in an abandoned truck in Austria. Police believe Bulgarian smugglers may be responsible.

So what do you think about the latest move by Carl Icahn? Can he right the ship at FCX? How about the Fed meeting next month – should they raise rates or not, and why? Any other stories you want to comment on? Then please do so over at the website.

Until next time,

Mike Larson

Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
The investment strategy and opinions expressed in this article are those of the author's and do not necessarily reflect those of any other editor at Weiss Research or the company as a whole.

For more information and archived issues, visit

Facebook Twitter Linkedin YouTube Pinterest

Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions and Privacy Policy.

To make sure you don't miss our urgent updates, just follow these simple steps to add our email to your address book. Would you like to unsubscribe from our mailing list?

Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source:"

Money and Markets
A Division of Weiss Research, Inc.

4400 Northcorp Parkway, Palm Beach Gardens, FL 33410 | 1-800-291-8545


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.

Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 080000 0514541.