Following the stock market slump in August, it is seen a tremendous outflow of investments in stocks from the global funds.
According to Bank of America division data release, investors withdrew 29.5 billion US dollars from August 20 to August 26 this year. It’s a record high since 2002, which is considered to be a starting point for monitoring the cash flows. Even during the latest global financial crisis, investors haven’t withdrawn such an amount of money. The major part of funds, that is 19 billion US dollars, was withdrawn on August 25 after a shocking “Black Monday” last seen in 2007.
It is known that investors withdrew 10.5 billion US dollars from funds related to developing economies stocks. It was caused by concerns about China’s economy decline followed by emerging fears on the stock markets.
