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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ron Bower who wrote (2831)	12/20/1997 1:29:00 PM
From: Terrapin	Read Replies (1) \| Respond to of 78750

But what about the large amounts of cash still flowing into mutual funds? By charter many of these funds must invest in stocks. I've heard financial commentators claim that the reason for the historic PEs of the past few years was due to this. I agree with the points you made and I realize that the "Mutual Fund Inflow" theory of market expansion can be pretty weak but where does this money go? Can we have a true bear market without mutual fund outflows? Or merely a continuation of the sector-specific corrections we've been seeing? Just curious, John