Investors SELL Stocks / BUY Bonds at Fastest Pace on Record in August – James R. Wigen – Sr. Portfolio Manager

Last month, the disparity between equity fund outflows and bond fund inflows was the largest on record, according to Trim Tabs, which tracks these data going back to 2006.

According to Trim Tabs data, equity exchange-traded funds and mutual funds saw outflows of $52 billion in August, versus $29 billion of bond-fund inflows, for a total difference of $81 billion. The next largest divergence occurred in October 2013, when there was an inflow to equity funds of $51.5 billion and an outflow from bonds of $19.2 billion, a difference of $70.7 billion.

During the week ended Sept. 4, investors pulled $8.4 billion from equity exchange-traded funds and mutual funds, while pouring $11.3 billion into bond funds. This continues a trend that has prevailed for most of 2019, wherein equity prices have been steadily rising even as investors pull money out of equity funds.



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