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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bozwood who wrote (4793)	8/28/2002 6:05:55 PM
From: ild	Respond to of 306849

Yeah, there were good redemptions in July. Despite of them the inflows to US equity mutual funds are still positive for 2002. People still have not changed much their 401K contributions. People still listen to their advisors that promise that the markets will recover. Also foreign investors that bought heavily in 1999 and 2000 have not yet sold. They are being hit twice: low stock prices and falling UD$. When will they sell? People in US don't like holding cash. Reason is simple: brokers, financial advisers, money managers, custodians etc want their cut. Look at Japan. All assets are falling. People are holding on their cash. They are not paid interest on it, but it's better than to lose it. Also with deflation its purchasing power increases. Baby boomers will be rising cash selling assets in down markets. All IMHO. I guess I skipped my Prozac today. -G-