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To: Think4Yourself who wrote (104219)	2/9/2008 3:04:56 PM
From: The Vet	Read Replies (1) \| Respond to of 306849

Americans are starting to pull money out of funds in a big way ?? Where is it going; under the mattress? There are few banks you could depend on with any degree of certainty, and any interest bearing paper is either risky, obscure or doesn't keep up with the true inflation rate. While US residents may still trust government securities denominated in USD, most offshore investor's confidence in the US dollar is rapidly declining, not that many other currencies offer better prospects. Commodities, gold and silver may have some appeal but they are not traditional investments for US centric investors who are suspicious of them, and they have adverse tax implications for US taxpayers. Those adverse tax rules don't apply to most offshore investors so they may be more inclined to use PMs and commodities as protection for capital.

To: Think4Yourself who wrote (104219)	2/9/2008 3:07:11 PM
From: bentway	Respond to of 306849

The work-a-day 401k guys that actually read their statements must be getting alarmed! What to do? Where do THEY hide?

To: Think4Yourself who wrote (104219)	2/9/2008 3:24:31 PM
From: Tommaso	Read Replies (1) \| Respond to of 306849

>>>$9.3 billion more left just last week.<<<< Just wondering where you found this figure. AMG Data Services does say $9.144 outflow from domestic mutual funds for the week ending 6 Feb. amgdata.com Thanks for menitoning this. I had got so tired of the seemingly unkillable optimism of "investors" that I had quit following those figures.

To: Think4Yourself who wrote (104219)	2/9/2008 3:51:22 PM
From: Tommaso	Respond to of 306849

Here's another angle: It's clear that a lot of money coming out of traditional mutual funds is going into ETFs, so that has to be allowed for. But it is also true that mutual fund cash levels are so low that withdrawals will force the funds to sell equities to meet redemptions. The money going into ETSs would counterbalance that, but any hesitation about reinvesting in ETFs could lead to a lot of unsupported forced liquidation. Margin debt also --of course- would come into play here.