[CrashList] Mutual Fund data seems to disprove a quantity theory of stock prices, Rob
julp at freesurf.ch
Fri Sep 29 22:35:49 MDT 2000
Please accept my excuses, folks. This is a followup to an arcane debate we
began nearly 6 monthes ago.
Witness the amounts in the funds going in opposite direction of the prices...
Any idea about a more important outflow of money supporting Rob's theory?
U.S. mutual funds are on track to pull in $211 billion this year, a 43 percent
increase over 1999, according to Financial Research Corp.
The Boston-based research firm said a net $14 billion was invested in stock
and bond funds in August. That brought the figure for the first eight months
to $140.6 billion, almost equal to last year's full-year total of $148 billion,
though all U.S. benchmark indexes have declined.
"For the past four or five years, investors have seen every dip or flat period
as a buying opportunity, and for the most part they've been right," said Burt
Greenwald, a Philadelphia-based fund consultant. He said the rise of 401(k)
programs has drawn money into funds.
Large cap growth funds attracted $6.5 billion, just ahead of mid-cap growth
funds, which pulled in $5 billion. Investors put $2.3 billion into international
and global funds last month. Bond funds continued to lose assets.
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