Staggering $356 Billion Pours into Checking and Savings Accounts in First Half of 2012
Sausalito, CA – August 9, 2012 – TrimTabs Investment Research said today that inflows into checking and savings accounts are far outpacing inflows into all other major investment vehicles.
“The Fed and other central banks are doing everything in their power to convince investors to play the speculative game in rigged stock markets,” said Charles Biderman, CEO of TrimTabs. “But investors aren’t taking the bait. The most popular destination for investor cash is the mattress.”
In a research note, TrimTabs explained that checking and savings accounts attracted a combined $356 billion in the first half of 2012, nearly double the inflow of $188 billion into bond mutual funds and exchange-traded funds.
Equity mutual funds and ETFs were the flow laggards, taking in only $6 billion, as a $26 billion outflow from U.S. funds offset nearly all of the $32 billion inflow into global funds.
“Inflows into savings accounts were consistently heavy—the flows weren’t just happening in one or two months,” noted Biderman. “Savings account inflows ranged from $30 billion to $90 billion in each of the first six months of this year.”
TrimTabs attributes the flood of money into savings vehicles and bonds funds to a variety of factors: poor stock market returns in the past 15 years, a weak economy, an aging population, stock market trading glitches, and increasingly aggressive central bank market manipulation.
“I don’t expect mom and pop investors to pile into equities anytime soon,” said Biderman. “The typical American household isn’t doing well financially, and retiring Baby Boomers are seeking safety rather than growth. Also, I think investors are wary of a market dominated by high-frequency trading and central bankers who are trying to take advantage of the trading robots by jawboning all the time about bailouts and money printing.”
Stern & Co., New York
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