Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks.
Banking Crisis Concern
Concern Greece will default and spur a banking crisis has driven the S&P 500 down 11 percent since April, leaving it trading at 13.3 times reported earnings, 20 percent less than the last trading session before Lehman fell.
Stocks have fallen four straight months, losing 5.7 percent in August after economists lowered forecasts for global economic growth, manufacturing in the Philadelphia region contracted by the most in more than two years.
US Debt Downgrade
A debate in Congress over the budget deficit prompted S&P to strip the U.S. of its AAA credit rating.
Euro & EU Concerns
Defaults by Greece and other highly indebted European countries may lead to collapse of the European common currency and even European Union.