Let me give you another possiblity for new funds entering the market.
Your mother's investments, along with most of the other investments of her generation, which are currently invested in current income producing instruments, will change hands over the next 10-25 years. These are funds which will be invested in addition to the funds currently being added to savings monthly by the boomer generation.
As an example, three years ago my wife's aunt, who was 86 at that time, died, and left her surprisingly (since she lived alone in a very modest apartment) considerable estate entirely to my wife. The entire amount had been invested in CD's and some 40,000 was in cash in a safe deposit box.
Needless to say, since it is now in my wife's hands, a large percentage is now invested in equities and is showing significant year to year growth.
I do not think my wife's situation is unique. Many of our parents generation have accumulated significant assets but have had a fear of the stock market since they were in their 20's when the market crashed and the fear of losing their money has kept them in extremely conservative investments.
As these people pass on, the percentage of those assets in equities will increase substantially.
This is not an insignificant amount of money. I do not know the figures for the amount of assets held by that generation but they are very large. In spite of the government's ability to confiscate as much as they can get away with of these assets, the transfer of these assets to other less consevative investing generations will generate BIG demand for equities such as Intel. It is already starting.
Barry |
