This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Investors Keep Pulling Money Out of U.S. Stock Funds

Investors continued to yank their dollars out of domestic stocks funds over the past week and reinvest them overseas.

Funds that invest in stocks saw $4.86 billion walk out the door during the week ended Wednesday, net of redemptions. That was on top of the $580 million in redemptions they sustained during the previous week, according to TrimTabs Investment Research of Santa Rosa, Calif.

Nearly all of the money came out of domestic stock funds, which had net outflows of $5 billion, up from $2.28 billion the previous week.

Funds that invest primarily in non-U.S. stocks took in a net $141 million, although that was down from $1.70 billion the previous week.

"There might be a weak dollar story here," said Vincent Deluard, Global Equity Strategist at TrimTabs. "People want to hold anything but dollars. In a typical recession scenario, people are selling equity funds and buying bonds. Here they're selling U.S. equities to buy international stocks."

The Dow Jones Industrial Average closed at 13,473.90 Wednesday, up slightly from 13,619.89 on Dec. 6.

Investors also pulled money out of bond funds, which had net redemptions of $1.45 billion, reversing nearly all of the $1.57 billion they took in the previous week. Hybrid funds, which invest in both stocks and bonds, had outflows of $634 million, compared with inflows of $684 million during the previous week.

Separately, TrimTabs reports that exchange-traded funds that invest in U.S. stocks took in a net $13.3 billion during this past week, more than making up for the $1.15 billion in redemptions they sustained the previous week.

ETFs that invest in non-U.S. stocks took in $2.78 billion, down from $4.39 billion the previous week. Deluard said the inflows into ETFs may be an indication of some bottom-feeding by institutional investors.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs