The economic climate in US has been dicey for quite sometime. Even when the stock markets showed a short term resolve, the unabated unemployment figures are a big cause of worry.
In US Money markets, there has been a consistent outflow of capital from Equities with reductions in the Bonds as well
The outpouring of money from Equities is evident from the latest data estimates of flows to the long-term mutual funds in the US
Source
If the numbers are anything to go by, the outflow from Equities in the US has been $4.6 Bn in the last week alone.
These are scary figures as far as the state of Equity markets are concerned. But, given the huge uncertainty on the back of unemployment and the revival of economy I am not really surprised. Confidences in equities would definitely need some positive and sustained recovery of the overall economic climate
Overall, last week has not been too good for the Long-term Mutual Funds with almost $4 Bn reduction in inflows over the previous week.
Something tells me that the happy days are pretty far in the US financial markets. However, from a consumer spending behaviors the picture might be improving a little as the US Credit Card debts have stooped down to their lowest level in 8 years