Rising anxiety among global investors propelled the swiftest weekly dash into cash since 2013 as money managers dumped bonds and drove the longest sell-off in the benchmark S&P 500 since the financial crisis.
The index has shed 2.9 per cent over the past eight trading days in its longest string of declines since 2008 as the US presidential race between Hillary Clinton and Donald Trump has tightened and fuelled volatility. Money market funds, a proxy for cash, absorbed more than $36bn in the week to November 2, according to fund flows tracked by EPFR.
Selling was concentrated in low-rated corporate credit strategies and US stocks, with the latter seeing $3.5bn of outflows. So-called high-yield bond funds suffered redemptions of $4.1bn over the past week, the biggest withdrawal so far this year. Redemptions from US stock funds have passed $92bn this year.