$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
The Morning Memo
The Morning Memo jump starts your day with weather, traffic and news
Career Center Blog