Reuters writes "Schwab clients slow down trading, go to cash". The article says, "Schwab's monthly activity report indicated investors may be heading to the sidelines. They steered $1.46 billion into money market funds in May while withdrawing nearly $1 billion from U.S. stock mutual funds. It was the third straight month of withdrawals from large-company stock funds. Investors also pulled $16 million out of municipal bond funds, the seventh consecutive month of net withdrawals. Rising money-market fund balances hurt Schwab two ways: Fees earned from more lucrative stock funds are reduced, and the company, like its rivals, has been waiving fees on money-market funds hit by ultra-low interest rates." In other news, see The Atlantic's wacky "Could a Greek Default Destroy American Money Market Funds?".
