Good thoughts about the market, Carepedeum. About six months ago, a crazy thought crossed my mind....perhaps the market could NEVER go down like it has sometimes in the past, simply because too many enthusiastic investors have money to throw at it.
Some figures reported in today's Washington Post:
Today, 77 percent of households' liquid financial assets are in securities; only 23 percent are in bank deposits and CDs. In 1985, more than half of those assets were in bank products.
In 1986, there were only about 1,800 mutual funds, controlling $700 billion in stocks, bonds and moneymarket assets. Now, there are 7,665 mutual funds controlling $6.2 trillion in assets.
Almost half (47 percent) of all households own mutual funds this year, compared with 25 percent in 1990.
.....truly, there is a lot of money that has to go somewhere in this market. Will be interesting to see what happens in 2000. |
