Long-term fund flows continue to flee U.S. domestic equities according to today’s release from the Investment Company Institute.
Over $2 billion came out of long-term mutual funds in the seven days ending September 23rd, meaning that September’s run rate might be about $7.7 billion of outflows. This continues the outflow trend that began in August.
In contrast, mutual fund flows into bonds have accelerated all year, and could continue to do so in September.
Thus if you switched from stocks into bonds over the last two months, you weren’t contrarian.