Money flowing into stock funds surged in first week of year

[Palm]

We've heard that there is a lot of money on the sidelines waiting for things to turn around. Volume on the exchanges has been very low for quite a while. However once the tax question was answered in the first round of the fiscal cliff drama over $10 billion in funds streamed into stock mutual funds. That's the most in a week since 2001 according to an article I saw this morning. I would guess a bit of that streamed from bond funds as interest rates are seen going higher but also a bit is new money from money markets etc.

Will need to keep an eye on this as a continued trend this way bodes well for equities and makes shorting even more risky.

[sageo]

Palm- Good AM to you. I have been "keeping an eye" on this for somr time now. If the Fed says they are going to keep rates to almost zero awhie longer and they and the large brokerage firms do not want folks to purchase gold or silver,then equities (stock mkts) seem like only place to go.(bonds also a no-no soon).Lots of 401k money could pour into stocks, prices could rise, and then "bigges" could short like crazy and regular folks would get "blind-sidded" again!  Answer to all problems.....buy inexpensive NG in an exceptional geographic location !! (ha-ha)  PS - Should spud Elk 3 before too long now.

[kommonsents]

Don't forget that the perpetual QE the Fed will do will fuel the markets as it has in the past. That money from QE gets funneled through the banks and they won't lend it, they will "invest" it in the markets. That will be the main driving force behind the markets near and medium term, IMHO.