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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (34662)	12/3/1999 6:00:00 PM
From: Fun-da-Mental#1	Respond to of 99985

Les, thanks a lot for your explanation, that definitely makes sense. It fits what I've heard, that money managers have been raising cash to deal with increased redemptions. This sounds like an all-or-nothing strategy. If all goes well, stock prices will stay up despite increased redemptions, confidence will be preserved, the money will flow back again, and nobody will notice it was ever missing. However if there's not enough money to go around, it'll be like a margin call, where they're forced to sell a lot of stock at once, and if that causes a big deflation in the value of their remaining assets, I imagine mutual funds could be driven into bankruptcy. BWIDK Fun-da-Mental