This Lipper graph from Barrons this last week is eye opening. It is attached to this post.
A few short weeks ago, mutual fund owners had been divesting their equity funds pretty heavily. It was a long streak. Then, they totally reversed themselves and jumped net into the market in a big way for a short four weeks. Last week, after several weeks of pummeling by the markets' taskmasters, they are running.
Money market funds are being added to in a significant way.
Both Muni and Taxable bond funds are still pretty strong on the redemption side.
If this is buy the dip, they sure didn't stay long. Are mutual fund participants losing their resilience?
Always remember this statement by Warren Buffett:
“During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted. Investors who avoid high and unnecessary costs and simply sit for an extended period with a collection of large, conservatively-financed American businesses will almost certainly do well.”
