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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (4799)8/31/1997 11:57:00 AM
From: Edward F. Horst Jr.   of 94695
 
Since much of the recurring monthly deposits are from 401K's, a change to reduce/stop isn't a simple decision or process. Employer money is also sometimes involved as matching contributions. What may be more likely, and have the same effect on stocks, is to redirect deposits into Treasurys or Bonds. In this way, workers remain commited to savings for retirement, but elect a safer haven from stocks. That's how I would see small investors reacting to a correction of any magnitude.
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