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Daily Digit: $10.6 bln safety bet

Monday, October 22, 2012 - 01:34

Oct 22 - Investors put $10.6 billion into safe money market funds during the week ended October 17th, according to Lipper. Conway G. Gittens reports.

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Your daily digit today is $10.6 billion. This is how much investors put into relatively risk-free money market funds during the period ending October 17th, according to the latest data from Lipper. That's a huge chunk of the overall $13.1 billion injected into all funds in that time frame, and shows investors remain cautious. Tom Roseen, head of research services at Lipper says investors have been shying away from most types of equity investments. SOUNDBITE: TOM ROSEEN, HEAD OF RESEARCH SERVICES, LIPPER, SAYING (English): "I think it's a threefold. First of all, I think, they've gotten burned in the past, and they're really just not trusting what's going on. We've heard a lot of stories about the European debt crisis being solved, and then we've turned out to find out that the, you know, action weren't able to look at the lending facilities that have been created. They said they may not have enough money to bail out Spain. So that's one particular reason. The other one is if you take a look at presidential election is coming up, and they don't know which way, you know, which way people are gonna go. Right now the polls have it split down the middle, whether you are for Obama or whether you're turn around and go after Romney. And the last piece is of course the fiscal debt crisis we have. Everybody has been talking about the fiscal cliff that we are been faced with, and people are very concerned. So they are actually pulling back on risk and putting money in safer areas." But at the same time looking for a little yield. According to Lipper, so far this year, for every roughly $13 put into fixed income funds, only $1 went to riskier assets like equities.

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Daily Digit: $10.6 bln safety bet

Monday, October 22, 2012 - 01:34