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Rekenthaler Report

Smoke Signals

Looking at contrarian indicators.

Mentioned:

Exodus
When the final numbers are compiled, June 2013 may prove to be a "bloodbath on the level of October 2008," says Morningstar's Syl Flood. Fortunately, Syl doesn't track the total returns of mutual funds, so he's not referring to performance. Rather, he tracks fund flows, where the numbers have been striking.

In June, investors redeemed funds across the board. Not just traditional mutual funds, but also exchange-traded funds, which until recently had enjoyed steady inflows. U.S. stock funds, emerging-markets stock funds, bond funds, gold funds--even best-seller DoubleLine felt the pain, as  DoubleLine Total Return Bond (DBLTX) suffered more than $1 billion in net redemptions for the month, despite performing in line with Barclays U.S. Aggregate Bond Index.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.