Record Weekly Outflows Cap Worst Year for Equities Since 2008

Investors have dumped equities at a record pace in the days since major central banks signaled they won’t be deterred in their fight against inflation — a fitting end to the worst year for world stocks since the global financial crisis.

Equity funds were hit by outflows of almost $42 billion — the highest ever — in a week when the Federal Reserve, the European Central Bank and the Bank of Japan all sounded staunchly hawkish in their policy outlook for next year, squashing bets of an imminent return to an era of cheap money. Typical year-end trends contributed to the selling, strategists said. The figures from Bank of America Corp., Citigroup Inc. and Barclays Plc — all citing EPFR Global data — show investors also pulled out of bonds and cash funds in the week through Dec. 21.