BOSTON ( TheStreet) -- The mutual fund industry this year has been overrun by a stampede out of U.S. stocks and into safer alternatives, namely large-company and bond funds, much as in 2008 when the financial industry needed a bailout to survive.Investors pulled $14.6 billion from U.S. equity mutual funds and put $102 billion into taxable bond funds through the end of July, said Ryan Leggio, a mutual fund analyst at Morningstar. The S&P 500 Index is down 6.6% so far in 2011 after two years of gains and a slight rebound last week. The benchmark for American equities lost 16% of its value between July 22 and Aug. 19, the most in four weeks since March 2009, which turned out to be the bottom of the most recent stock-market crash.
A Nightmare on Main Street as Funds Fail
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