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Bond Funds Break Record

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For the week ending February 5 investors added a record $10.7 billion to taxable bond mutual funds and exchange traded funds (ETFs) according to Lipper. On the flip-side investors withdrew $18.8 billion from stock mutual funds and ETFs. The stock market’s shaky start caught a lot of investors flat footed. The WSJ reports:

Investors also continued to yank cash out of emerging-market stocks for the fourth week in a row. Emerging-market stock funds shed $2.7 billion in the most-recent week, the biggest outflow since February 2011, compared with $2.6 billion a week earlier.

Virtually all of the shift came from money sloshing out of U.S. stock ETFs and into bond ETFs, funds that can often see big weekly swings in assets. Just $386 million flowed out of traditional U.S. stock mutual funds in the most recent week. Traditional bond mutual funds attracted $1.2 billion.

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.