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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Box-By-The-Riviera™ who wrote (88395)4/1/2001 12:08:31 PM
From: Ilaine  Read Replies (1) of 436258
 
>>WHERE IS THE MONEY GOING IF NOT INTO EQUITY FUNDS? SAVINGS ACCOUNTS THAT'S WHERE.

A whopping $109 billion poured into equity funds the first 12 weeks of 2000, $114 billion more than the first 12 weeks of this year. Where did that money go? Surprise, most of that cash went into savings accounts. The most recent Federal Reserve H6 says that $105 billion had gone into savings accounts between the second week of March and December 2000, not seasonally adjusted, compared to $26 billion between December 1999 and March 2000. Also, $5 billion has gone into small CDs so far this year vs. $23 billion early last year. Combined, savings and small CDs have attracted $60 billion more this year than over the same time frame in 2000.

About $17 billion more has gone into retail money market funds over the first 12 weeks of this year. While only $14 billion or so has gone into bond funds so far in 2001, that is about $50 billion more than the $36 billion outflow from bond funds the first 12 weeks of 2000.

In summary, while stock fund flows dropped by $114 billion; bond funds got $50 billion more, savings accounts grew by $60 billion and money markets grew $17 billion for a total of $127 billion.<<

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