Bond funds came under the greatest pressure as investors withdrew $15.1 billion, or almost twice the $8.8 billion that flowed out the week before.
Although redemption is letting up, the intensity is still apparent and sales problems for the future may be at stake. TrimTabs suggests that funds have experienced redemptions at $5 billion per day in October, sign of nervous investors, reports Joe Morris of Ignites.
The sales that are at stake are focused on the buy-and-hold investors, which have been burned badly this month. Also, the retirement customer is at risk, as they may not invest as generously in the future, due to the disappearing nest eggs.
If you’re a buy and hold type and are stressed out, consider selling one-third of your portfolio as you wait out the market storm.
