Equity fund inflows are not as rambunctious as it gets near a short term top. Sideline cash is still huge and panic short covering is nowhere near complete. We expect that real economic data will continue to show that the economic downturn bottomed during the 1Q of this year. Our guess is that the US economy will steadily improve over the rest of this year. Therefore, we expect that corporate America will again start to buy their own and other companies shares for cash, and lots of it, starting soon.
Bonds lose flow.
Plunge in margin debt plus steady equity fund inflows- healthy for the longer run.