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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: abuelita who wrote (6251)	9/12/2002 10:44:10 PM
From: stockman_scott	Respond to of 89467

Fidelity Magellan's cash fund sinks By Kathie O'Donnell Bloomberg News BOSTON — The Fidelity Magellan Fund's cash position in July fell to its lowest level in almost 2-1/2 years as investors withdrew from the second-largest U.S. stock mutual fund. The fund had 0.5 percent of its assets in cash as of July 31, down from 3.2 percent at the end of June, according to Fidelity's Web site. Investors redeemed about $1.3 billion more than they put into Magellan in July, and fund manager Robert Stansky may have used some cash to purchase stocks, analysts said. U.S. stock funds leaked a record $52.6 billion in July as the Standard & Poor's 500, Nasdaq composite and Dow Jones industrial indexes fell. Low cash levels at big funds such as Magellan put the stock market at risk, some managers said. If investors again pull out deposits like they did in July, fund managers without enough cash will have to sell a lot of stock in a short time. "I'm concerned that funds don't have a lot of cash on hand to meet redemptions" in the next three to six months, said John Buckingham, president of Al Frank Asset Management. "That can be like a run on a bank and lead to a lot of selling." Vin Loporchio, spokesman for Boston-based Fidelity, said cash positions vary, and the reported level is "a one-day snapshot at the end of the month." Magellan's July cash position was the lowest since February 2000's negative 0.2 percent, according to Fidelity's Mutual Fund Guide. The negative position suggested Stansky had borrowed cash to meet redemptions, said David Pittelli, senior analyst at Fidelity Investor, a Needham, Mass.-based newsletter. February 2000 and July were the only months that Magellan had investor outflows exceeding $1 billion since Fidelity Investor began keeping track in early 1998, Pittelli said. Magellan's positions in financial, health-care, industrial and consumer-staple shares rose in July, according to the Web site. Holdings in energy, telecommunication and consumer discretionary services declined. Outflows continued last month, when investors withdrew about $161 million, according to Fidelity Insight, a Wellesley Hills, Mass., newsletter. Assets in Magellan, Fidelity's biggest fund, were $60.3 billion at the end of last month, up slightly from $59.9 billion as of July 31, Fidelity said. Some investors say Magellan's low cash position won't hold the market back much because individual investors have so much cash in money-market funds — more than $2.2 trillion as of last Wednesday, according to the Investment Company Institute. Cash in money-market accounts quickly could be shifted into stock funds if the market appears to be headed solidly higher, said Fritz Meyer, a manager at Invesco Funds. The amount of cash in money-market funds equals about 22 percent of the total value of the stocks in the Wilshire 5000 Total Market Index — a historic high, he said. "There's a hell of a lot of dry powder sitting on the sidelines should people start regaining some conviction in stocks," Meyer said. Copyright © 2002 The Seattle Times Company seattletimes.nwsource.com

To: abuelita who wrote (6251)	9/12/2002 11:09:08 PM
From: elpolvo	Read Replies (2) \| Respond to of 89467

i watched the exchange between scott ritter and his former boss richard butler on msnbc. they both came to the same ultimate conclusion... that inspectors be allowed back in iraq with unlimited access. as far as credibility... i thought butler might have had a slight edge over ritter. they both referred to public records which neither produced so who knows at this point who is telling the truth? maybe they both are and they perceive things differently. butler just seemed to have a bit less of a personal stake or "agenda" and a bit more humility. JMHO