In the wake of unprecedented volatility in trading, many American households are ready to throw in the towel, bailing out of both stocks and bonds alike in numbers that are causing bank economists to wonder if the U.S. economy is about to repeat its 2008 dive into recession.
Credit Suisse has found important evidence “mom and pop” middle America are leaving both the stock market and the bond market in numbers that have not been seen since 2008.
The bank noticed that in July and August retail investors that held nearly 90 percent of all U.S. mutual fund assets last year pulled money from both stock and bond funds for two consecutive months. It was a repeat of the fourth quarter of 2008, as the U.S. economy entered the financial collapse that brought on the recent deep recession, severely tarnishing President George W. Bush’s second term in office.