Mutual fund outflows in Jan, Feb are a factor. Those people obviously listened to Chris Scoreboar., while some of us were mesmerized by the Kudlow, BoB Brinker, and didn’t heed his warning. So its easy for Chris to not panic because he hopefully followed his own advice and isn’t down for the year.People watching their retirement accounts may worry that near 20% correction in S&P 500 may be a harbinger of the 50% correction from 2000-02, and some people may want to diversify if they are 100% stocks.
Of course, it may be good time to DCA into banks,etc. Even I was the fool for buying WAMU a few days ago, expecting a surprise 0.75 Fed cut will cause 20% pop. Now we need a 50% pop. Of course, I was lucky that I panicked last August and sold WAMU at 33.
"The sharp declines in stock markets in the first few weeks of the year prompted investors in the US – the world’s largest mutual fund market – to pull a net $32.9bn (€22.4bn) from equity funds in January, the worst month of outflows since July 2002." http://www.financialnews-us.com/?page=ushome&contentid=2449887526 I heard that Feb was also neg.
