$75 Billion In Mutual Fund Redemptions In September

Oct. 01, 2008 6:48 PM ET4 Comments
Larry MacDonald profile picture
Larry MacDonald

A lot of people pushed the panic button in September. TrimTabs reported $75 billion fled U.S. mutual funds during the month, three times the monthly record set in 2001 for redemptions! About two-thirds of the outflow came from equity funds and the rest from bond funds.

When we had Claymore Investments CEO Som Seif as a guest at our last bloggers’ meeting, he said heavy fund outflows were an important indicator of a bottom in a bearish stock market, going by the historical evidence. It was at the top of his things to watch.

September might not be the exact bottom, but the figures would seem to at least indicate it’s getting close. “I agree,” says Mr. Som in response. “However so much will depend on Congress at this point,” he added.

This article was written by

Larry MacDonald profile picture
Larry MacDonald worked as an economist for many years and now manages his investment portfolio while writing about business and investing topics for leading Canadian publications. He also is the author of several business books.

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