Just a minor outflow of funds from bonds to stocks could cause an explosive stock market rally.
This resulted in slower economic growth and less spending, thereby correcting the outflow of funds to the neighbor.
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It does not want to lower interest rates because that would trigger a massive outflow of funds from the banks.
Mr Sarris is expecting "some bleeding, some outflow" of funds once the banks reopen, but believes that once EU bailout funds begin flowing "in a matter of weeks", confidence will return.
In October, building societies experienced a net outflow of savers' funds for the eighth month in a row.
Investors will remain cautious and we could see continued outflow out of muni bond funds.
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Surprisingly, given the hype surrounding the sector, there was probably a modest net outflow of money from hedge funds in 2005.
The outflow of money from stock mutual funds finally reversed to inflow in October, while the inflow of money into bond mutual funds has reversed to outflows over the last four weeks, and accelerated last week in the largest weekly bailout from bonds since October, 2008 (which took place just before bonds began a huge rally in November, 2008).
Meanwhile, the outflow of money from U.S. stock mutual funds that took place at a startling pace last year and most of this year, even as the impressive new bull market in stocks began and continued, did not reverse to inflow until October.
American Funds in general are suffering from a massive outflow of assets.
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Outflow data has been a response to lower inflow, not redemption of these funds.
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