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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (143)	10/29/2001 5:27:07 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Who exactly are these people who sell after a precipitious drop? Monday October 29, 5:00 pm Eastern Time Investors pull $29.5 bln from U.S. stock funds (UPDATE: adds byline, updates March outflow figure in second paragraph, adds details throughout) By Cal Mankowski NEW YORK, Oct 29 (Reuters) - A mutual fund trade group said on Monday that investors pulled a record $29.51 billion from U.S. stock mutual funds in September, similar to earlier estimates from data tracking firms. ADVERTISEMENT The net withdrawals, a record in dollar terms, came as the stock market sagged before and after the Sept. 11 attacks on the United States. The previous record monthly net withdrawal was a revised $20.67 billion in March. The fund industry has returned to positive flows in October, but just barely, according to estimates from fund data tracker TrimTabs.com. Based on trading through Oct. 24, the firm projects net flows into stock funds of $200 million this month. A net $35.6 billion flew out of stock funds in the third quarter as investors pulled out cash in each month, according to data from the Investment Company Institute (ICI). The last time stock funds suffered a quarterly outflow in a calendar quarter was the third quarter of 1990 when Iraq invaded Kuwait. At that time the outflow amounted to $3.21 billion. The U.S. stock market performed poorly even before the Sept. 11 attacks. The Dow Jones industrial average (^DJI - news) fell nearly 16 percent in the quarter and the Standard & Poor's 500 stock index (^SPX - news) declined 15 percent. The Nasdaq composite (^IXIC - news) fell 31 percent. ``We're finding that the financial advisers and representatives that we talk to are still sitting on the sidelines,'' said Greg Drose, chief operating officer of Choice Asset Management in Denver. Drose said October has brought small positive flows to the company's stock mutual funds after net withdrawals in the third quarter. But there was only one instance when one of the company's funds was forced to liquidate a position because of investor redemptions, he said. Cash levels at stock mutual funds are about 5.6 percent of assets, the ICI data showed. Industry experts consider that sufficient to meet redemptions even in turbulent markets. The September net outflows from stock funds represented less than 1 percent of fund assets, considerably less than occurred when the stock market crashed in October 1987. Stock funds in that month saw an outflow equivalent to 3.10 percent of assets. Assets of stock funds fell 10.8 percent in September to $3.02 trillion. Domestic stock funds had an outflow of $27.04 billion in September compared with an outflow of $1.31 billion in August. World stock funds had an outflow of $2.47 billion compared with an outflow of $3.50 billion in August. The ICI said that the $29.51 billion outflow from stock funds reflected a significant weakening of purchases and that investors did not panic during September's events. New purchases including purchases through redemptions fell to $67.80 billion from $97.91 billion in August. Redemptions, including through exchanges, fell to $96.30 billion from $102.73 billion in August. Bond funds had cash flow of $7.63 billion compared to $16.72 billion in August. Taxable bond funds had an inflow of $7.96 billion compared to $13.73 billion in August and municipal bond funds had an outflow of $335 million compared to an inflow of $2.98 billion in August. Money market funds had cash flow of $53.15 billion in September compared to an inflow of $26.46 billion in August.