Third Quarter in Funds: And the Bear Goes On
There were few winners in another brutal quarter.
The third quarter of 2002 was the worst three months for stock fund investors since last year’s third period, which was marred by recession and terrorist assaults on New York and the Pentagon.
Uncertain profit outlooks, second thoughts about the state of the economy, and ongoing stories of corporate scandal lashed the stock market to pre-Internet bubble lows in July. Domestic-stock funds fell more than 15% on average during the quarter, according to preliminary Morningstar data. International-equity offerings dropped 16% as major developed markets, such as Europe, caught the American contagion.