In June, redemptions from U.S. stock funds exceeded investments by approximately $14 billion. Meanwhile, bond funds had a net increase of approximately $10 billion. This is according to data from Financial Research Corp.
and reported in today's Wall Street Journal
. There is a concern that these redemptions indicate that investors are chasing performance again. This could force fund managers to sell shares to service these redemptions which could create a cycle wherein selling begets more selling.
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