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According to the Investment Company Institute (ICI), year to date, investors have taken some $291 billion out of mutual funds and exchange-traded funds.
But that's not the whole story.
The ICI's numbers represent net flows, meaning there were inflows, but they were dwarfed by outflows.
The real story isn't about net outflows – it's about where the $108 billion that flowed into the market went, and how you can profit from that movement.
First, let's get one thing clear – I'm not interested in mutual funds, save for a few that I like and stand behind in my paid service, Money Map Report.
ETFs are much better investment vehicles. They're tradable all day (which means they're infinitely more "liquid" than mutual funds), they're cheaper than mutual funds, and there are thousands of specialty ETFs that mutual funds can't touch.
Now let's look at where the money went and how to follow it…
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.
I would sincerely appreciate knowing what you are looking at in this of major unrest with the market due to the virus. I'd also like to compare my own research with yours.
Ann,
Thank you for reading Money Morning!
If you would like to see more of Shah's research, and get the chance to chat directly with him, be sure to catch him at his next live broadcast "Market Close with Shah Gilani."
Everyday before the closing bell, Shah goes LIVE to go over the day's market events, where he thinks we're headed next, and what he's looking at now.
You'll also have the chance to join a chat window, ask him questions, and get a response in real time.
So be sure to join him tomorrow HERE at 3:45 PM.
Best of luck,
– Money Morning Team Member