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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (22022)	8/3/2002 2:55:36 AM
From: elmatador	Respond to of 74559

Money bag: Investors pull $47bn out of equity mutual funds Bag is packed. It is going to go around. Add to the bag the looting from South America and it gets quite interesting. Perhaps pretty soon people will be talking Asian values? Investors pull $47bn out of equity mutual funds By Julie Earle in New York Published: August 1 2002 22:00 \| Last Updated: August 1 2002 22:00 Investors continued to flee a grim US stock market in July, with early industry estimates suggesting that some $47bn was pulled out of equity mutual funds - the largest net monthly outflow in history, according to new data. The forecasts have raised concerns that investors are losing faith in equities and could further upset an already volatile market. Wall Street received another another setback on Thursday after downbeat reports on reports on manufacturing data and unemployment benefits cast doubt on US economic recovery. By midsession yesterday, the Dow Jones Industrial Average was down 200.06 to 8,536.53, while the broader S&P 500 index gave up 23.83 to 887.79. Investors already pulled $18bn from equity mutual funds in June as the stock market lurched lower, compared with a $5bn net inflow in May, according to the Investment Company Institute (ICI), the mutual funds trade group. The second straight month of big equity fund outflows in July, would be the fifth monthly outflow in 12 years. "It may well be that we are seeing a re-think on equities as an asset class. Capital gains in the past 12 years have been badly eroded and we could see sustained net outflows continue," said David Bowers, chief investment strategist at Merill Lynch. Don Cassidy, a senior analyst at Lipper, the fund tracker said July was starting to look like last September when the terrorist attacks in New York and Washington prompted investors to pull $30bn equity mutual funds.