Money is bleeding at a critical rate in the financial services industry

Money-market funds: A net $69 billion was deposited into these funds, designed to be safe harbors where investors can temporarily park cash and quickly access it when needed. (sounds impressive at first, but it was a giveback from the previous month which saw huge redemptions) That proved a strong draw in August, in contrast with July. In that month, investors withdrew a net $113 billion, due to fears that Congress might fail to reach an agreement to lift the government’s debt ceiling

Bond funds: Investors typically are attracted to bonds when stock prices tumble. That was the case in July, when bond funds attracted $8 billion in net deposits. But last month, investors in taxable bond funds — a category that includes corporate bonds — withdrew a net $9.7 billion. Strategic Insight noted big withdrawals out of floating-rate and high-yield bond funds. Both categories hold bonds that typically earn high rates of return, with greater risk of volatility.

Foreign stock funds: Investors withdrew a net $1.4 billion from funds that buy foreign stocks. Flows into this category have been negative for two months in a row, but remain positive year-to-date, with nearly $44 billion in net deposits.

The drawdown in the past four months has been dramatic, and we now have net withdrawals approaching  $30 billion year to date. It remains ironic that stocks (and mutual funds) are the one thing people don’t want to buy at a lower price.

For those who think much of this money is going into money market funds or term or GIC's, you would be wrong!

There is one thing left that has huge upside, is recession proof, can bring a source of revenue and historically has been stable over the long run...Real Estate. I know, I know what about what has happened in the States, so what, it is a chance for a newed pattern of growth. At least you can live in a house, what are you going to do with gold?