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IPFS News Link • Stock Market

U.S. Stock Market Exodus Is Second-Biggest Ever, BofA Says

• https://www.bloombergquint.com, Ksenia Galouchko

U.S. stock funds bled $27.6 billion in the days through Dec. 12, which includes last Friday's plunge in the S&P 500 Index that capped the worst week for the gauge since March, according to BofA's note, which cited EPFR Global data. This is the second-biggest redemption since February's spike in the VIX volatility measure, according to Jefferies Financial Group Inc.

The turmoil in stocks, which has erased as much as $4 trillion in U.S. equities since the end of September, continued this month as traders feared that a global economic slowdown will curb earnings growth and end the equity bull run. Investors enter 2019 searching for assets that would bring returns after 2018 saw both fixed income and stocks disappoint.

Instead of U.S. equities, market players flocked to Japanese and emerging-market equity funds, in addition to government bonds as global equity funds saw a record weekly outflow of $39 billion, according to BofA. Investment-grade bond funds also set a historical precedent with an $8.4 billion redemption, the data show.


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