T:
<<When will need to happen to get people OUT of the stock market?>>
The mutual funds generally tell people that they must simply wait through the dips of the market. I know a couple of people who were "dreaming" of retirement on the basis of their mutual funds gains. Well, that is postponed to ....? Dreams shattered. Cash and even short term deposits are king. IMO the herd will become disenchanted after a time, 6 more months. Even now, there are increasing redemptions. A hefty downward spike could accelerate the redemptions.
A couple of days back I asked a mutual fund salesperson what they were pitching on mutuals, his answer: "We are into mortgages now". I asked him if he was selling mortgage backed securities? "No", was the response, "we are taking banks out of mortgages". Well, here we go, the mutual fund salespeople know keenly that their pitch no longer rings true and this one appeared to be ashamed to admit to being in that business (mutual fund sales). It is my assumption that this salesperson was referring to general equities, not golds.
Well, the clock appears to be ticking on the 4,000 odd hedge funds and we should soon hear some more news of losses, especially in light of the move in the YEN vs US$. There may be war action in Serbia......and on it goes.
6 months max.
Best regards,
Ron E |
