October 30, 2008
Investors pulled $9.2 billion from stock mutual funds in the past week, extending a streak of withdrawals that began in the last week of July, according to data compiled by TrimTabs Investment Research.
Equity funds that invest in U.S. stocks had redemptions of $7 billion in the week ended Oct. 29, while those that invest outside the U.S. had outflows of $2.2 billion, the Sausalito, California-based firm said today in a statement.
Withdrawals rose 43 percent from the prior week, when investors removed $6.5 billion from stock funds. Bond funds had $5.9 billion in withdrawals in the past week.
Investors have pulled money out of stock mutual funds every week since July 24, fleeing a global selloff in equities. The financial crisis that began in the U.S. with a rise in defaults of subprime mortgages has wiped out more than $30 trillion in market value.
Lending among financial institutions, essential for economies to function, froze after Lehman Brothers Holdings Inc.'s bankruptcy on Sept. 15 sparked concern more banks would fail. The Standard & Poor's 500 Index has slumped 24 percent since then.
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- Bloomberg: Investors Pull $9.2 Billion From Stock Funds, TrimTabs Says, October 30, 2008
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