Equity funds lose big, money up: Lipper
Cash moved into money market funds to the tune of $47.5 billion, the biggest net weekly inflow since February 2008, bringing a sigh of relief among investors concerned a potential U.S. debt default could have done damage to the sector.
Excluding exchange-traded funds, which anecdotally represent institutional trade flows, equity funds had net outflows of $11.4 billion, indicating retail investors were the biggest sellers in the market.
This was the fourth consecutive week of equity fund outflows, the first time that big of a streak has occurred in a year.
The week included the historic downgrade of the United States' AAA credit rating by Standard & Poor's, a symbolic blow to the country's prestige. This followed fast on the heals of a down-to-the-wire deal to raise the country's debt ceiling and ensure payment of all its obligations.
S&P's downgrade highlighted the extreme friction within the U.S. government to get to a solution quickly, a condition that leaves investors nervous about its ability to govern effectively. The ongoing European debt crisis only added to the negative market sentiment.
Ironically, money markets were really the only place to run. The inflows were really few and far between. ... taxable bond funds saw fairly significant outflows, said Tom Roseen, senior analyst at Lipper.
In the reporting week, the benchmark Standard & Poor's 500 stock
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