SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Stock Market Bubble
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jags who wrote (2182)10/17/1998 9:16:00 AM
From: Tommaso  Read Replies (1) of 3339
 
Well, what tends to happen in a market decline is that mutual funds maintain approximately the same amount of cash, or perhaps increase the amount held somewhat, but as the equity value of the funds decreases, the cash becomes a larger percentage of the total assets.

It does not appear that funds are yet selling stock to increase their cash holdings, since for many years managers who did that have looked foolish. To hold onto your job it is better to be part of a large crowd that is wrong than to be right--at least until things get very tight.

So far the "wisdom" is still to be as close to totally invested as possible. Think how embarassed a fund manager must be to be sitting on 40% cash after that cut by the Fed!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News