Out Of Funds

Monthly domestic outflow trend from long term mutual funds starting 1/31/07 through 9/8/10. Last point -290 billion.

Real Estate Is A Drag

Markets stuck between the yes it is no it isn't double dip action. No one can underestimate the power and adaptability of trading markets over the last 30 years, but the markets may have finally run up against a bridge to far when considering the ongoing massive equity losses in real estate against most of the proclaimed opportunities provided by the overall correction. Revised lending rules and current corrections in equity balances on virtually all real estate sectors leave little room for any economic expansion. Muscling past property problems to this point has been difficult since interventions, such as the Fed's, applies its heavy lifting capabilities only to the lenders load.

If time can sort and correct the housing mess with sideways action, that would be grand. However, if the markets continue to decline through the fall and actually do double dip, all asset classes will turn negative. Even the wonders of gold will collapse as redemptions in all investment sectors meet growing cash demand sparked by deflation fears.