Thursday, August 4, 2011

Big investors’ fears over the federal debt-ceiling drama triggered a near-record outflow of cash

Money market funds see $103-billion outflow amid debt drama

On a percentage basis, this week's decline was larger — amounting to 3.9% of total fund assets of $2.63 trillion. The 2008 outflow was 3.5% of assets at the time.

Posted by mark @ 10:22 AM (1350 views)
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5 thoughts on “Big investors’ fears over the federal debt-ceiling drama triggered a near-record outflow of cash

  • Money is piling into safe havens and do you know where you will find these safe havens? That’s right, it’s the UK and the US. The inflow of money has pushed UK yields to near record lows and they have also been tumbling in the US. It’s one think talking a good game about despair and default in the UK but when push comes to shove, there is no better illustration of reality than watching where the big money goes for its holidays

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  • I’d hardly call either the UK or US safe havens….but then I guess it’s all relative.

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  • A good buying opportunity then. Go on, crystallise those loses!

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  • General Congreve says:

    There is now a flight of capital from stock markets in full swing seeking safe havens. It is certainly going into the dollar, see right-hand side of CNN markets website (main part shows fortunes of the global stock markets):

    http://money.cnn.com/data/world_markets/americas/

    There is also a flight to US and UK Bonds, see UK gilt yield curve here:

    http://markets.ft.com/research/Markets/Bonds

    And of course there is also a flight to precious metals, see here:

    It even seems precious metals, while experiencing a good safe haven run of late have taken a knock back around the 3pm mark, a time they often seem to turn around when on a tear, if memory serves me correctly:

    http://lynncoins.com/spot1.htm

    It would certainly appear that gold isn’t the best safe haven today.

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  • I love the sound of pennies dropping. Was this week’s stock market debasement and today’s smack down in anyway related to this?

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