Latest mutual fund flow data from the Investment Company Institute shows that investors pulled $3.6 billion out of domestic U.S. stock funds for the week ending September 15th. Funds which invest in foreign stock markets received $582 million of new capital, for a net -3.02 billion fund flow for stocks according to Citi's Tobias Levkovich.

Yet the S&P 500 rose over the period, as shown below by this chart ending on September 15th. Stocks rose from the end of August through September 15th:

Bond funds over the same period? They received $7.5 billion in new capital, and this is part of the reason why companies like Microsoft can borrow almost as if they were the U.S. government.

(Data via Citi, Tobias Levkovich, PULSE Monitor, 24 September 2010)