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"Worst Case" Confirmed: Biggest Weekly Equity Fund Outflow In History

If it seems like it was just a few days ago  that we reported of the biggest ever inflow into equities, it's because that's precisely when it happened. It was then that according to BofA CIO Michael Hartnett, we observed a "non-stop euphoria cabaret" in which markets saw a record $33.2bn inflow to equity funds, record $12.2bn inflow to active funds, $1.5bn into gold (50-week high), as well as record inflows to tech & TIPS.

Incidentally, that was the day the S&P hit its all time high, and more importantly, the day BofA also said that its euphoria and panic-buying driven "sell signal" was just triggered for the first time in 5 years, and predicted a 12% selloff in the next three months.

In retrospect, it took just two weeks because that post marked the peak of the market, and it has been non-stop selling since.

But much more troubling than the selling, is the composition: after all, as we showed earlier, the "worst case scenario" according to both JPMorgan and Morgan Stanley is if the liquidation panic was not just

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