Your Economy (No Politics)

[Bullwinkle]

Stock-fund outflows suggest capitulation: analyst
By John Spence
Sept. 9, 2010, 10:59 a.m. EDT

BOSTON (MarketWatch) -- The $9.5 billion outflow from stock funds in the latest week was the worst week since May 26 and "a clear acceleration versus more recent flow trends," said Ticonderoga Securities analyst Douglas Sipkin in a note Thursday. "This marks the 18th consecutive week of outflows. The only potential bright light, in our view, is that this could be the beginning signs of capitulation," Sipkin wrote. The analyst added several negative trends have contributed to the weakness, including a "battered retail investor" and the rising popularity of exchange-traded funds. "We think that selling in anticipation of increases in capital gain taxes can also be added to the list at this point," Sipkin said.

http://www.marketwatch.com/story/stock-fund-outflows-suggest-capitulation-analyst-2010-09-09