Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (12376)	12/26/1997 7:27:00 AM
From: Tommaso	Read Replies (3) \| Respond to of 18056

Isn't that outflow about a record? I haven't followed those figures carefully enough to remember, but it seems pretty high. For the past year I have been opining that, especially gievn the low cash balances in the mutual funds, any outflow could have a leveraged effect on the market avergaes if it continued for three straight weeks. By "leveraged" I mean that it's already been shown that drops in the market trigger transfers out of equity--which so far have been made up because fund managers and others still had cash to "buy the dips." But if that cash isn't there the dip will stay, and if more people switch there could be a succession of what John Train called "vicious chops." Not that much money needs to change hands--all that's needed is a changing perception of the safety of mutual funds in equities.