Lipper Data: investors withdraw record $ 23.9 bln from US.-based stock funds – RTRS

According to the latest Lipper data released on Thursday, the US fund investors withdrew $23.9 billion out of the stock market during the latest week, marking the largest withdrawals from those funds on record, Reuters reports.

The main reason cited behind this draw out of the stock markets is due to the benchmark S&P 500 and Dow Jones indices sinking further from their record highs.

Pat Keon, senior research analyst for Thomson Reuters' Lipper unit noted: "We're seeing a flight to safety here, money leaving equities, a lot of money going to money markets. The market's overbought. It's due for a correction and looking for a reason, and I think it kind of found it with this."

Keon cautioned that the withdrawal figures for the week were boosted by ETFs, which are often used by fast-trading institutional investors.