(9-25-12) Recent reports claim that billionaires like Warren Buffet, John Paulson and George Soros are dumping stocks, while retail investors are putting their money into equity ETFs, reversing the trend of outflows from common stock mutual funds.
So what's really going on?
The global central banks have been working very closely with financial media in order to get the results they want.
Meanwhile there has been an aggregate of trillions flowing out of plain vanilla common stock mutual funds for the last 4-1/2 years.
At the same time, money from money market accounts, which are paying 0% or near zero interest, is flowing not back into mutual funds -- but rather into S&P ETFs or other index ETFs.
That's how ETFs have been marketed as the Next New Big Thing.
It was also reported that Deutsche Bank's chief equity strategist Binky Chadha said, "Equity ETFs have had large inflows every day for the last 2 weeks, based on our database of daily ETF flows.