Tags: fund | investors | stocks | pullback

Fund Investors Yank $10.9B in Largest Pullback From US Stocks Since 2013

Fund Investors Yank $10.9B in Largest Pullback From US Stocks Since 2013
(Dreamstime)
 

Wednesday, 16 October 2019 01:49 PM

Investors continued the largest retreat from the U.S. stock market since at least 2013 by pulling nearly $10.9 billion from mutual funds and exchange-traded funds that hold domestic equities last week, according to data released Wednesday by the Investment Company Institute.

The withdrawals pushed the total losses from stock funds to $36.6 billion over the last 3 weeks, the first time in ICI records going back to 2013 that investors had pulled $10 billion or more from U.S. stock funds over three consecutive weeks.

Weak manufacturing data and concerns that the trade war between the U.S. and China could lead to a global economic recession have weighed heavily on investor sentiment, leaving the benchmark S&P 500 trading in a relatively narrow range.

The index is up slightly more than 19% for the year to date, largely due to expectations that the Federal Reserve will continue its series of equity-friendly interest rate cuts.

Investors continued to seek the perceived safety of bonds, sending slightly more than $5.8 billion into taxable and municipal debt funds. For the year to date, the category has brought in nearly $333.2 billion in new assets, compared with a nearly $114 billion in withdrawals from U.S. stock funds.

World stock funds, meanwhile, notched a five-week losing streak by dropping another $660 million in outflows. Investors have pulled slightly more than $40.5 billion from the category since the beginning of the year. 

© 2021 Thomson/Reuters. All rights reserved.


InvestingAnalysis
Investors continued the largest retreat from the U.S. stock market since at least 2013 by pulling nearly $10.9 billion from mutual funds and exchange-traded funds that hold domestic equities last week, according to data released Wednesday by the Investment Company...
fund, investors, stocks, pullback
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2019-49-16
Wednesday, 16 October 2019 01:49 PM
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