Wow! Money Market Asset overtakes Equity Asset

I've talked about the sectoral torture for the last two days. It appears that we are kind of experiencing that. It just drop a bit by bit over the last two months, DJIA lost close to about 1,425 points since November 3, 2008 when it hit 9,625. Honey, you have just lost 15%. Yeah, I know about the bad news yesterday, I read it here.

NEW YORK (CNNMoney.com) -- Stocks slumped Wednesday afternoon as a bleak retail sales report and more dour news from the banking sector amplified fears of a prolonged recession.

After the close, Apple (AAPL, Fortune 500) CEO Steve Jobs said he's taking a medical leave through the end of the second quarter because his health-related issues are "more complex" than he thought. Shares tumbled 10% in after-hours trading after having been halted for the first hour of the extended session.

The Dow Jones industrial average (INDU) lost 250 points, or 2.9%, ending at its lowest point since Dec. 1. The Dow has now tumbled for six sessions in a row.

The Standard & Poor's 500 (SPX) index lost 3.4% and ended at the lowest point since Dec. 1. The Nasdaq composite (COMP) lost 3.7% and closed at its lowest point since Dec. 4.

(Click to read the whole article here)

There is no surprise to me that people are getting very bearish as this is indicated by how investors allocated their money. Money market fund asset as of November 2008 stood at US $ 3.7 trillions vs equity of about US $ 3.6 trillions. A year ago, equity fund was US $ 6.5 trillions, loss of value in equity is certainly a contributing factor but still, there is an increase of almost 600 billion in money-market fund that has ZERO yield, comparing November 2008 to December 2007.

(click this link if you want to see the original statistics)

This is one of the contrarian signals - don't' follow the herd. I know we have quite a few false signals but when the right signal comes, when it sky-rocket, I am afraid I may not be fast enough to catch all of that.