Flow Reversal

In another reversal of fortune, equity funds reported an outflow of more than $4 billion this week, the largest this year.  Commodity funds, meanwhile, saw an outflow of $3.2 billion, their largest weekly outflow ever.

Just when investors appeared to be headed back into the market, could it be that they’ve changed their mind?

Maybe investors were reacting to press reports that airplanes would be falling out of the sky, schools would be closing and the Four Horsemen of the Apocalypse would be visiting today because of a 2.3% nick to the federal budget caused by sequestration.

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