According to the independent research service TrimTabs, equity investors have stepped up their redemptions of equity mutual funds as stock prices declined. Net fund flows from U.S. equity and global equity funds were:
- First eight months of 2008: -$75 billion
- September 2008: -$41 billion
- First eight business days in October: -$56 billion
The last time that equity funds' redemptions were so high was in July 2002, just before a new bull market in equities began in October 2002. For details on TrimTabs' report, please click here and then scroll down for the press release dated October 13, 2008.