Where not to look for market clues

[I-luvmoney]

remain fully invested, and studying inflows is like using a rearview mirror to see what's ahead.




By Morningstar Looking for answers about where the market is headed? Don't bother with mutual fund data.
It would be nice if those data could tell us whether a tidal wave of new money was going to hit Wall Street or whether jittery investors were about to pull out their money, but it doesn't work that way.
The most commonly cited data from mutual funds I see being used to get a sense of where the market is headed are funds' net inflows and their cash positions. Unfortunately, the first gauge is a lagging indicator, and the second hardly ever changes


read here http://articles.moneycentral.msn.com...rketClues.aspx