Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jeffbas who wrote (6564)	4/3/1999 11:32:00 AM
From: Michael Burry	of 78670

That mutual funds will find a crisis in the redemption/selling stock balance is for me a given. I frequently tell colleagues that I envision a time in the future when a group of workers sitting around the water cooler are talking about their mutual funds. The mood is resignation after panic. The market is crashing, and some event has finally spooked the American public. Everyone is pulling out of mutual funds, but the mutual funds can no longer guarantee that the sale will get done on time. They can't sell stock fast enough. Fred says, "Fidelity will get me my money by Friday." Arney chimes in, "Lucky you, Vanguard says it'll take a week." The same mechanism that has caused small caps to fall flat (and continue falling flat this year) will cause large caps to fall hard when the time comes. And mutual fund cos will bankrupt themselves or exist in ignominy thanks to endless barrages of lawsuits. I usually finish up my sermon by saying something like "The average shareholder wasn't spooked at all this past fall, and look what happened. The Dow fell 20% on mild jitters. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next