With funds locked up in inflated real estate, where is the future stock market capital to come from?
Record $$ into real estate matched by record $$ out of funds = less money sitting on sidelines
Watch the DOW dive today
Dow 8,856.38 -16.58 (-0.19%)
Nasdaq 1,377.87 -2.75 (-0.20%)
S&P 500 940.43 -0.43 (-0.05%)
10-Yr Bond 4.246% +0.018
NYSE Volume 173,433,000
Nasdaq Volume 275,232,000
Reuters Business Report
New-Home Sales Hit Record Level in July
Monday August 26, 10:09 am ET
WASHINGTON (Reuters) - Sales of new U.S. homes shot up to a record level in July, the government said on Monday as low mortgage rates added fuel to a sizzling housing market.
Sales of new single-family houses surged 6.7 percent to an annual rate of 1.017 million last month, easily surpassing the 976,000 rate projected by private economists.
But the government ratcheted lower its tally of the pace of June home sales to 953,000, down from the originally reported 1.001 million. The downward revision to the June number meant July was the first time new-home sales passed the one-million mark.
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Reuters Business Report
Stock Fund Outflows Set Record in July
Monday August 26, 9:32 am ET
NEW YORK (Reuters) - Investors pulled a record $49.0 billion from U.S. stock mutual funds in July as all major stock indicators fell sharply and the average diversified stock fund lost nearly 10 percent, fund data and research firm Lipper Inc. said on Monday.
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The monthly net redemptions from stock funds were the largest on record in dollar terms, topping the $30 billion in net withdrawals in Sept. 2001.
The July outflows represented 1.6 percent of stock fund assets, which total about $3 trillion. On a percentage basis, the outflows were not of record proportions. In Oct. 1987, when stocks crashed, outflows as a percentage of assets set a record at 3.17 percent.
July was the second consecutive month of net redemptions from stock funds. By Lipper's estimate, stock funds saw outflows of $13.8 billion in June. Flows to stock funds were positive in each of the eight months from Oct. 2001 to May 2002.
Bond funds took in a record $19.2 billion in July, Lipper said. The old record for bond funds was $15.4 billion in Aug. 2001. Money market funds took in $31.0 billion. Lipper is a unit of Reuters Group Plc (NasdaqNM:RTRSY - News; London:RTR.L - News). |
