The $700 billion that has flowed into taxable-bond funds in the last five years is larger than flows into U.S. equity funds in the late '90s, but investors today seem to be reacting to fear and not chasing performance.
Strong 2011 returns and perceived safety led to continued popularity for bond funds last month, while domestic growth funds suffered redemptions.
Despite equity markets having one of the best Octobers in recent history, U.S. stock funds continue to see robust outflows that could eclipse what we saw in 2008, says Morningstar's Kevin McDevitt.
Investors piled out of U.S. long-term stock funds last year and toward safer options at the greatest rate since the peak of the financial crisis in 2008.
I am not in any way affiliated with any of the funds and/or fund companies I write about
But last month's outflows were a record in dollar terms only.
Dan Culloton, 10/29/2001
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