Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem safer, like bonds.
If that pace continues, more money will be pulled out of these mutual funds in 2010 than in any year since the 1980s, with the exception of 2008, when the global financial crisis peaked.
I'd be interested in data as to what has happened to this money whether it has flowed to bonds, has been cashed in to pay bills, went to foreign markets, etc. etc. All are listed as possibilities but without supporting data.
Their one example of a "small investor" was a guy who had $1.1 million in investments which is hardly typical.