Bonnie Bear, the U.S market is fuel by the international community like the European, the Asian, and most important of all the American people. The population of America should be close to 280,000,000 by now, let say half the population owns mutual funds and every year they put in $3500. That amounts to $490,000,000,000. You're looking at close to half a trillion dollars. I personally think the actual figure is a lot bigger than this.
Being in a 401K plan does not mean he or she will not chicken out. If the Dow suddenly go Kaput, everyone will be running for the border. Oops..I mean running for the exit. I was eyeing on some asiangrowth mutual funds on August/97, the fund has about 230 million dollars. During the Asian currency problem + the Oct mini crash, the funds lost about 60 million dollars = $170 milllon left. Today, the fund is slightly over 100 million dollars. There's a lot of RRSP money withdrawn from that fund. (In America, they called it the 401k plan) When the earth starts to shake, Americans will redeem their funds even if there's some sort of penalty on it.
See you later Bonnie Baby! |
