Follow the money...out of America

[babylonsister]

Follow the money...out of America
More and more investors are investing overseas as a way to diversify as well as escape the recession fears that have plagued Wall Street.


By Paul R. La Monica, CNNMoney.com editor at large
Last Updated: March 28, 2008: 12:57 PM EDT



NEW YORK (CNNMoney.com) -- Where are investors putting their money in these uncertain times? Apparently, more and more are seeking safer havens in Europe, India, China and Latin America.

With recession fears dogging the U.S. markets, stocks had a dismal first quarter. But according to recent figures from two key research firms that track the mutual fund industry, investors are flocking to overseas markets.

Fund tracker TrimTabs Investment Research reported in its latest weekly report about market liquidity that total inflows into equity mutual funds during the week ended March 26 was $7.43 billion.

But of that total, $4.4 billion, or nearly 60%, was invested in funds that mainly invest in non-U.S. stocks.

What's more, the latest TrimTabs data showed that investors pulled $6.9 billion from exchange-traded funds (ETFs) that invest in U.S. stocks. Meanwhile, ETFs that invest in stocks from outside the U.S. reported inflows of $831 million.

more...

http://money.cnn.com/2008/03/28/markets/thebuzz/index.htm?section=money_mostpopular

[magellan]

1. "Free market" locusts. n/t

[jwirr]

2. No wonder they need another tax cut!