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In trading in the money markets, yields on Treasury bills have fallen to 40-year lows as investors switch out of equities, seeking safer, if lower, returns.
ABN Amro has just pulled out of equities in America; it is closing the operation that it earlier bought, ironically from ING. Mr Groenink observes ruefully that the American investment banks were simply too strong.
"I think the inclination is going to be to hunker down, move out of equities and reduce contributions to the plan," said Lori Lucas, defined-contribution practice leader at Callan Associates, an investment consulting firm based in San Francisco.
In September it pulled out of equities.
Marc Silverman didn't get out of equities at the top of the market and watched his retirement savings dwindle.
Bond prices moved higher as money flowed out of equities, dropping the yield on the 10-year note to 3.65% from 3.69% earlier in the day.
Similar(7)
So shattered were ordinary Americans by gas lines, recessions and double-digit inflation that they resorted to pulling cash out of equity mutual funds — for eight straight years.
Clients pulled out of active equity investments, where assets under management declined 13 percent, and invested in various fixed-income investments that are perceived as safer.
The 2008 year-to-date outflow of $108.3 billion is almost triple the $43.4 billion pulled out of domestic equity funds in all of 2007.
The fourth came out of equity trading.
Individual investors have begun bailing out of equity mutual funds.
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