Bull Market just now getting started..
What we had from 2009 - 2010 was just a snap back from Oversold conditions in a Bear market. Similiar to 2001-2002 snap back, the Bull Market back then started in 2003 and ended in Oct. 2007, a 4 year run.
Today we are on the cusp of the start of a Bull Market.
Notice how on almost every down day opening , the market recovers the losses by the end of the day.
Its no coincedence why this happens : 401k Bond outflows + Money Market outflows are streaming into equities. Fund Managers get inflows all day from 401k people exiting Bond and Money Markets and by 4pm each day they have to invest the money into the proper equity positions that they were instructed to do so.
This is what happens in a bull market.
If you remember just recently in a Bear market the exact opposite occurred, every up opening was followed by massive equity outflows by the end of the day.
Feb 4, 2011 ... MUNIS AND MONEY MARKETS Municipal bond fund suffered net outflows for a twelfth consecutive week
Investors Add to US Stocks for 4th Straight Week By The Associated Press
February 9, 2011 (AP)
Mutual fund investors add to US stock funds for 4th week in a row as confidence returns
Investors are returning to the stock market, and it's looking like the shift may have staying power. For four consecutive weeks, mutual fund investors have added more money than they've withdrawn from funds buying U.S. stocks.
The last time there were four straight weeks of positive flows was in April, according to the Investment Company Institute.
The fund industry organization said on Wednesday that a net $1.4 billion was added to U.S. stock funds for the week ended Feb. 2. That was smaller than the net gains in each of the preceding three weeks.
Still, the four-week moving average, which smooths out week-to-week shifts, remains solidly positive at $2.9 billion per week. That could signal a recent shift in investor sentiment has become entrenched.
"We're seeing a buildup in confidence," said Matthew Lemieux, an analyst with fund tracker Lipper Inc. "We'll continue to see that, unless we see bad news about the economy."
Although recent economic data haven't been entirely positive, "there are no big bombs dropping," Lemieux said.
The stock market's recent gains also have fueled a shift in investor sentiment. The Dow Jones industrial average at its highest level in two and a half years.
Since the market meltdown in late 2008, investors have mostly been pulling their money out of U.S. stock funds, and shifting into bonds, or foreign stock funds. Before the meltdown it was typical for stock funds to take in twice as much money as bond funds in any given month.
Investors began shifting away from bonds in November, largely reflecting fears about the fiscal health of state and local governments. But the latest numbers show that flight is slowing.
A net $583 million was added to bond funds for the week. They've posted a net outflow for eight of the past 12 weeks. In the last four weeks there's been a weekly average net outflow of $454 million.
Most of that cash has been pulled from municipal bonds. Money has exited muni bond funds for 13 consecutive weeks, with a net $1.17 billion flowing out in the latest week. Taxable bond funds, including corporate bonds, have taken in more money for six straight weeks, with a net $1.75 billion added in the latest week.
Political unrest in Egypt has rattled many investors in the world's emerging markets. However, U.S. investors continued to add more than they withdrew from foreign stock funds in the latest week, with a net $346 million flowing in. Flows to that category have been positive for 22 straight weeks.