David Rosenberg, no bull on U.S. equities has an interesting piece out today. This has been a trend that we are continuing to see develop. Volume is soft on up days while quite the opposite on the down days. Also, fund flows are moving toward assets with lower betas along with a trend toward bonds. See what Davis has to say:

LONG-STANDING “INCOME” THEME STILL IN VOGUE

All that `dry powder‘ the bulls talk about is indeed being put to use ”” money market fund assets fell an additional $29.3 billion last week. But the proceeds are heading towards bond funds, which had estimated inflows of $10.2 billion on top of $11.2 billion the week before. A further $239 million were directed into hybrid funds and this was in addition to $979 million the prior week as well. U.S. equity funds, as it turns out, suffered a $2.6 billion net outflow yet again.

This is remarkable and a testament to the resolve of the twice-burnt, thrice-shy general investing public. So far, the general public has stayed the course and is focused on income growth as opposed to strictly capital appreciation in its quest for sustainable long-term risk-adjusted returns in the face of a hedge-fund driven 60% rally in stocks from the lows. For a good `take‘ on what this all means, have a look at page 5 of the Sunday NYT business section In Fund Flows, a Caution for Stocks.

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Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.