DC plan members in the United States did some panic selling in the past two weeks, trading out of stocks and into bonds, research shows.
The Aon Hewitt 401(k) Index also shows trading activity in DC plans was markedly higher on Friday, Aug. 21 and Monday, Aug. 24, following noteworthy market drops.
Read: Why investors are selling stocks
Friday’s trading activity was two times the normal level, while activity on Monday was seven times the normal level, the third highest day of trading since 2008. Aon Hewitt saw activity return to more “normal” levels since then.
Preceding Friday’s market drop, the index showed no days of above normal trading in July or the beginning of August.
The Aon Hewitt 401(k) Index tracks the 401(k) trading activities of nearly 1.3 million participants, representing nearly US$160 billion in collective assets.
Also read: