People are exiting the stock market in droves

The summer months are usually relatively benign for markets as investors opt for sandbars in lieu of bar charts, but that’s not happening this year.

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. The summer months are usually relatively benign for markets as investors opt for sandbars in lieu of bar charts, but that’s not happening this year. The US stock market is shrinking, and investors are pulling their money out at a near-record pace as storm clouds gather over the US economy. That means the titans of Wall Street may have to contend with choppy water as they cruise toward their Nantucket getaways this year. What’s happening: “Sell in May and go away” is a popular Wall Street-ism that describes the trend of investors closing up shop and sorting out their portfolios ahead of vacations. It also alludes to the historical underperformance of stocks during the summer months. But recent trading flows show that something larger is at play this year.