TrimTabs Says Mattress Remains Most Popular Destination for Investor Cash

Aug
09

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.”

###

Richard Stern

Stern & Co., New York

Media Relations, Corporate Communications

(212) 888-0044[office]

(212) 724-8505 [direct]

(917) 208-7010 [cell]

Email: richstern@sternco.com

LinkedIn: http://www.linkedin.com/pub/dick-stern/10/86a/327

Tags:       

3 Responses to TrimTabs Says Mattress Remains Most Popular Destination for Investor Cash

  1. Ed_B on August 10, 2012 at 3:23 am

    I would agree with this assertion. I know very few people who are investing in this market. Most of them do not trust the market mechanisms, the Fed, the government, or, least of all, the crooks on Wall Street. The feeling out here in the trenches is that if Wall Street and bankers want to plan fancy paper games, they can jolly well do it WITHOUT our money!

    That said, there are a few good buys in select stocks that a few investors are buying now. Many of these are in the energy, commodities, precious metals, and agriculture areas. Stocks that pay a dividend and that have a history of raising their dividends are preferred. When a company pays real dividends and taxes it is clear that they are earning real money and are not just playing accounting games. Companies that do not pay their taxes or dividends, on the other hand, but talk good earnings are highly suspect and therefore avoided.

    The situation in Europe as well as the fall election has pretty much turned off any enthusiasm that investors might have had for a Christmas rally this year and without that why risk our money for a shot at minimal gains?

    Finally, in spite of what many investing pros believe, most small investors are not stupid. We recognize that when the stock market is in rally mode because of the Fed distorting the market with free money but the market fundamentals do not support it, it will not last. Any time the Fed and the government are prepared to “get real” and stop treating us like idiots via fake employment and inflation numbers, however, most of us are prepared to listen. Until then, ‘protect what you have’ is the name of our game.

  2. TC on August 10, 2012 at 11:32 pm

    Into which banks are these flows going? It would be interesting to know what percentage of inflows into savings and checking accounts is reaching the TBTFs like JPM, BAC and C.

  3. Charles Longfellow on August 11, 2012 at 6:42 pm

    An interesting article on a certain kind of information is found here: http://www.alt-market.com/articles/964-disinformation-how-it-works

Leave a Reply

Your email address will not be published. Required fields are marked *


Charles BidermanCharles Biderman is the Chairman of TrimTabs Investment Research and Portfolio Manager of the TrimTabs Float Shrink ETF (TTFS)

Biderman’s Practices of Success

I recently launched a new online course, Biderman's Practices of Success, on Curious.com (curious.com/charlesbiderman). The key to the practice of success is to be fully present in the moment and to be totally engaged in the important areas of life, particularly when we do not want to be. Read More.

Mr. Charles Biderman is an associated person of Trim Tabs Asset Management, LLC, an SEC-registered investment adviser. All opinions expressed by Mr. Biderman on this website are solely those of Mr. Biderman and do not reflect the opinions of Trim Tabs Asset Management, LLC, Trim Tabs Investment Research, Inc., their affiliates (collectively, “Trim Tabs”), or any other associated persons of Trim Tabs. No part of Mr. Biderman’s compensation from Trim Tabs is related to opinions which he expresses on this website, elsewhere on the internet, or in any other medium.

You should not treat any opinion expressed by Mr. Biderman as a recommendation to make an investment in any company discussed or cited in any of his postings. Mr. Biderman’s opinions are based upon information he considers credible, but which does not constitute research by Trim Tabs. Neither Mr. Biderman nor Trim Tabs warrants the completeness or accuracy of the information upon which Mr. Biderman’s opinions are based.

Archives