Redemptive Measures

Rattled and frustrated investors cashed in funds, with only an uptick at the end of the month saving July from being a total disaster

As the crisis of confidence in Corporate America reached epidemic proportions, mutual-fund investors suffered steep declines in July. Many investors cashed in their stock funds, exacerbating the declines as portfolio managers were forced to sell holdings to meet redemptions. A slight improvement in second-quarter earnings, most released in the middle of the month, wasn't enough to stop the selling.

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