Most Cash Since 2008 Flows Out Of U.s. Equity Funds In June: Lipper

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via RTRS

Investors played it safe in June, plucking the most cash out of U.S.-based equity funds since the peak of the 2008 global financial crisis as U.S. trade disputes discouraged risk, Lipper data showed on Thursday.

U.S.-based stock mutual funds and exchange-traded funds (ETFs) recorded $36.3 billion in withdrawals overall for the month of June, according to the research service, preliminary figures that would represent the largest withdrawals since October 2008.

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The data also showed the funds have posted five straight weeks of withdrawals as the Trump administration’s tariffs on $34 billion of Chinese imports are due to go into effect on Friday.

During the most recent, holiday-shortened week, $8.3 billion moved out of U.S.-based equity funds and high-yield bond funds shed $1.7 billion, Lipper said. U.S. markets were closed on July 4 for the U.S. Independence Day holiday.

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The possibility of a trade war has distracted markets from a robust U.S. economic picture, and minutes from the latest Federal Reserve meeting released on Thursday showed monetary policymakers share some of the markets’ concerns.

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