Ghost of Igloi wrote:
agip,
The article says "mutual funds and various other asset managers."
Domestic mutual funds had large capital gains distributions, to balance I am sure there have been sales. On the institutional side rebalancing from growth to value, developed international to emerging. At least that is what I would do.
I think fund flows and investor sentiment is an indicator of the now and has little predictability value.
Igy
The word is not value. The word is "non-correlation". There's been coverage in "Pensions & Investments" last quarter about institutional managers entering into agreements (contracts) with Commodity Trading Advisers and Real Estate Advisers. They're doing the same thing I'm doing: Moving investment funds into areas that are not correlated with the market.
I don't know if the CTAs are playing long, short, or market neutral, but if you were short oil, gold, and such (basically what I've been since summer) in the second half of 2008, you would have made a lot of money. Oil totally collapsed and gold dropped 30%.