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Oct 04

Money flowing to bond funds keep mortgage rates low

From the New York Times article In Striking Shift, Small Investors Flee Stock Market

Investors pulled $19.1 billion from domestic equity funds in May, the largest outflow since the height of the financial crisis in October 2008.

Over all, investors pulled $151.4 billion out of stock market mutual funds in 2008. But at that time the market was tanking in shocking fashion. The surprise this time around is that Americans are withdrawing money even when share prices are rallying. 

A big beneficiary has been bond funds, which offer regular fixed interest payments.

As investors pulled billions out of stocks, they plowed $185.31 billion into bond mutual funds in the first seven months of this year, and total bond fund investments for the year are on track to approach the record set in 2009.

Check to see the cool graphs showing where investors have been putting their money the past few years. Bad for stocks, but good for home buyers.

2 comments

  1. Stevo Tandarts

    Hello this post is very interesting. I’ll use it for my essay :). Can you say to me some related articles I could use too?

    1. Sarah Jullion

      Getting back to you late – hope you found more info for your essay!

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