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TrimTabs - Press Release - Oct 16, 2006 Inflows into U.S. Equity Mutual Funds Post Have Resumed -- Averaging $170 Million Daily since October 3 -- Compared with Outflows From May through Mid-September. Santa Rosa, CA – October 16, 2006 – TrimTabs Investment Research reports that individual investors have been cautiously stepping back into the U.S. stock market following the Dow Jones Industrial Average’s string of record closing highs. From Tuesday, October 3 through Wednesday, October 11, U.S. equity mutual funds received $1.2 billion in fresh cash, an average daily inflow of $170 million. View PDF File “This level of flow is far below the average daily inflows of $1.0 billion in 2000 and $360 million from 2003 through 2005,” noted Charles Biderman, Chief Executive Officer of TrimTabs. “But the current inflow rate is much higher than the $270 million daily outflow from U.S. equity funds from May 2006 through August 2006. What’s more, we expect inflows to pick up dramatically if the stock market advance continues.” As the table below shows, U.S. equity fund inflows from 2001 through 2006 have been much lower than they were from 1995 through 2000. The bull run since 2003 has occurred even though individual investors have not been big buyers of U.S. equity funds.
Since individuals have ignored the U.S. stock market, corporate America has been the massive buyer, reducing the overall shares outstanding by a record $496 billion year-to-date. In addition, portfolio managers have started pumping fresh cash into U.S. equities. During the seven trading days ended Thursday, October 12, futures-related exchange-traded funds issued a whopping $2.5 billion. “If individuals join companies and portfolio managers in buying heavily, a runaway bull market is the likely results as more money chases fewer shares,” said Biderman. View PDF File # # # TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity, including mutual funds and exchange-traded funds, as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit www.TrimTabs.com. CONTACT: Conrad
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