Investors Pull Money From U.S. Stock Funds, ETFs
Investors pulled their dollars out of mutual funds over the past week, apparently fearful about the state of the economy.
Stock funds saw a $580 million walk out the door the week ended Wednesday, net of purchases. That reversed a small part of the $14.58 billion they took in the the previous week, according to TrimTabs Investment Research of Santa Rosa, Calif.
The Dow Jones Industrial Average closed at 13,444.96 Wednesday, compared with 13,289.45 on Nov. 28.
All of the redemptions came from funds that invest primarily in U.S. stocks, which saw a net $2.28 billion walk out the door. That was an about-face from the previous week, when investors added a net $7.42 billion.Vincent Deluard, global equity strategist at TrimTabs, said that if the current trend continues, it will result in eight months of straight outflows from U.S. funds, something that hasn't happened since the Black Monday stock market crash in 1987. He said the numbers apparently indicate the consensus view of the U.S. economy. "In the past six months that view has been rather gloomy," he said. "So much money has gone out of U.S. equity mutual funds, you have to believe it's going to come back at some point."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV