Withdrawals From Stock Funds Biggest Since ’08

[marmar]

(Bloomberg) Investors pulled the most money from global stock funds since 2008 in the past week as the Standard & Poor’s downgrade of Treasuries and the deepening European debt crisis prompted a flight into cash and gold.

Funds that buy global equities suffered $3.5 billion in net withdrawals in the week ended Aug. 10, the most since the second week of October 2008, according to Cameron Brandt, director of research at Cambridge, Massachusetts-based EPFR Global. Investors removed $11.7 billion from funds that invest in U.S. equities, the most since May 2010 when investors pulled money following a one-day market crash that briefly erased $862 billion.

“This week had a feeling of capitulation as we saw investors running for cover,” Brandt said in a telephone interview. “The last time we saw this kind of flight to safety” was in 2008, he said.

Investors have rushed into money-market funds and gold as global equity markets lost $6.8 trillion in value since July 26. On Aug. 5, S&P downgraded U.S. debt for the first time, sending the benchmark Standard & Poor’s 500 Index down by 6.7 percent on the first trading session after the move. In Europe, riots swept across Britain and the sovereign-debt crisis deepened in the countries that use the euro. ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-12/global-stock-funds-post-biggest-withdrawals-since-2008-on-u-s-downgrade.html

[RUMMYisFROSTED]

1. Buy water and bread!

Now!

[Swede]

2. Also a quart of milk.

Maybe a load of bread.

[Warren DeMontague]

4. And a stick of butter.

I remembered!

http://www.youtube.com/watch?v=Im4GwUD1UY8

[Yavin4]

3. Bread molds, and Water Evaporates

Buy silver and gold instead.

[RUMMYisFROSTED]

8. After you try to eat the gold and silver you can cap your broken teeth with them!

:think:

[high density]

5. People are idiots

Buy high, sell low.

People just can't ignore the noise of the media and the endless nonsensical shrieking over "The Dow." You'd think we were a nation of day traders given the way the media covers these issues.

[jschurchin]

6. "Buy high, Sell low" ??????

WHAT??? People are idiots?

[FreeJoe]

7. It's kind of a given...

that when you see stock prices at relative lows, withdrawals will be at relative highs. That's how it works. When more people want out than in, the price goes down.