Money Market Redemptions Hit 2 1/2 Year High

Let's take a look at recent fund flow data once again. According to AMG Data Services, for the week ended January 31st, "Money Market funds reported net cash outflows totaling -$35.720 billion, the largest outflow from the sector since 6/30/04 and fewer funds reported inflows (678) than any week since 6/29/05 as more funds reported net redemptions than any week since 4/27/05.”

To put these outflows into perspective, the last time the outflows were that large (6/30/04) the S&P 500 Index was down about 3% over the next 30 days.

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