The week ahead: There is a smell of February in the air; Short sellers having the time of their year. The Thomson Reuters Most Shorted Stock Index has dropped 19% since Sep.

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Stocks could fall 40% to 50% to reach fair value, with recession in first half of 2019: Morgan Street Capital

via @MFoxCNBC

The week ahead: There is a smell of February in the air 

Record Exodus From Credit Funds Outpaces Flight From Stocks

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via BBG

Nervous money managers fled from corporate bonds like never before in an exodus that outpaced stocks.

Record outflows hit funds that buy investment-grade debt from the likes of Apple Inc. and Ford Motor Co., according to Bank of America Corp. strategists citing EPFR Global data. The redemptions totaled $7.5 billion in the week through Oct. 10.

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By comparison, investors pulled $1.4 billion from equity portfolios during the period, while government and Treasuries actually saw inflows, according to the data which takes a snapshot of the ETF and mutual fund landscape. High-grade bond gauges have also suffered the steepest losses of all the Bloomberg Barclays indexes in this month’s market meltdown.


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