The government shutdown and the last minute deal to avoid default have damaged the credibility of the U.S. as a haven for investment, according to Dennis Gartman, the founder of The Gartman Letter, who predicts that money is now more likely to flow to foreign investment.
Investors pulled $43 billion out of U.S.-based money market funds in the week ending Thursday, according to research firm Lipper. The funds invest in short-term securities such as short-dated U.S. Treasury bills and the flows marked their largest one-week decline since August 2011. It marks a complete reversal from the $40.7 billion of inflows into these low-risk funds in the month of September.
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