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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Shea who wrote (10243)	8/2/1999 8:04:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Mutual-fund assets reach $6 trillion . . . SAN FRANCISCO (CBS.MW) -- Though the nation's love affair with mutual funds may be waning, assets of these investment vehicles reached a record $6 trillion in June, according to the Investment Company Institute's latest survey of the fund industry. While new cash flow to stock funds was up from the previous month, the lion's share of asset growth was attributed to rising stock prices and not new money. Assets of stock mutual funds grew by $203 billion in June. Net new-cash flow was $19 billion during the month, vs. $15 billion in May. For the year, cash flow to stock funds is about 27 percent below the level of the first six months of 1998. That last line is the clincher. . . very important. Folks are investing in mutual funds LESS this year than last. . . .27 percent less. . . some of that is due to online trading. . . the rest to lack of confidence in the market/economy. So remember that when you hear that we are at all time highs in mutual fund valuations. We are more concerned with the cash flow and it's relationship to the prior month and the percentage change compared to the same TWO months in the prior year. This can be used as a confidence indicator. Anyone with historical data on mutual fund money flows. . . please let me know. . . . Without adequate historical data, it is nearly impossible to predict the future Rande Is