$16.9 billion pulled from mutual funds in a week
Investors pulled the most money from U.S. mutual funds in 14 months as stocks lost ground and Congress battled over raising the nation's debt ceiling.
Mutual funds suffered $16.9 billion in withdrawals in the week ended Aug. 3, up from $9.6 billion the previous week, the Investment Company Institute said.
For the second week in a row, all categories of stocks and bond funds experienced redemptions, data from the Washington-based trade group show.
The week's withdrawals were the largest since the week ended May 26, 2010, when they reached $17.4 billion.
Investors withdrew $10.4 billion from funds that buy domestic stocks and $2.5 billion from funds that invest in international equities. Taxable bond funds had redemptions of $2.2 billion while municipal bond funds lost $661 million, ICI data show.
Domestic-stock funds suffered $9 billion in redemptions this year through June, according to the ICI, moving closer to a record fifth straight year of withdrawals.
The Standard & Poor's 500 Index fell 3.4 percent in the week ended Aug. 3. Since then the benchmark for the largest U.S. companies has dropped an additional 11 percent.
President Obama signed a bill Aug. 2 that ended the stalemate over raising the debt ceiling.
"The debt-ceiling thing kind of demoralized the American public," JPMorgan Chief Executive James Dimon said in an interview with CNBC.
Trending on seattletimes.com
Most viewed photo galleries
Career Center Blog