Investors Cut Risk in October
Monthly fund outflows were the highest they've been in more than three years.
October's $29.1 billion in long-term outflows (that is, non-money market mutual funds and exchange-traded funds) showed that investors aren't immune to market conditions. With the Fed raising rates in late September and the S&P 500 falling 6.9% in October, investors turned cautious. The outflows were the most severe since August 2015, the last time the U.S. equity market was in the midst of a correction. Back then, falling oil prices and energy stocks led the decline. Energy stocks are at the tip of the spear once again as oil prices fell into another bear market, but this time around, technology shares are also feeling pain.