Investors have been bailing out of the stock market all year, but the exodus picked up considerable speed last week.
U.S. stock mutual funds bled nearly $10.6 billion during the week ended Oct. 3, the most since the week in August 2011 when Standard and Poor’s downgraded the U.S. credit rating following the debt ceiling brawl in Washington, according to data from the Investment Company Institute.
That brings the total 2012 outflow from U.S. mutual funds to more than $100 billion. By comparison, those funds lost around $57 billion during the first nine months of 2010, and $80 billion during the first nine months of 2011.
As investors were pulling money out, the S&P 500 still managed to rise a modest 1.2%. The tepid gains came amid mounting evidence of a growth slowdown in China and questions about whether Spain will request a bailout.
“Investors have recently adopted a “wait-and-flee” attitude toward equities” as they seek more clarity on issues in Spain and brace for third-quarter corporate earnings, the November elections and resolution to the U.S. fiscal cliff, said Sam Stovall, chief equity strategist at S&P Capital IQ. Read More..