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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Death Sphincter who wrote (20118)	6/12/1998 7:10:00 AM
From: Monty Lenard	Read Replies (1) \| Respond to of 94695

Carl, I just rec'd this update from my broker. "The Investment Company Institute released mutual fund inflow estimates for May, showing: Stock funds $20.5 billion Hybrid funds ÿÿ 1.5 billion Bond funds ÿÿ 7.5 billion TOTAL $29.5 billion While these estimates are subject to revision and don't include money market funds, the preliminary total is close to the comparable totals for April ($31.94 billion) and March ($31.10 billion).ÿ However, within that total, flows to stock funds are weaker, while bond funds have gained assets.ÿ Those two categories are down 22.8% and up 71.5% from April's totals, respectively." Monty

To: Death Sphincter who wrote (20118)	6/12/1998 8:14:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 94695

Because the percentage of cash in mutual funds stays about the same (having steadily got lower for several years), it seems reasonable to assume that each time additional cash flows into funds it is put into the market pretty quickly. Of course with thousands of funds that all have slightly differing policies, it's hard to know muc more than that. In any case, net cash flow into the funds certainly does reflect continuing confidence of people with money to commit, whether they are big investors, little investors, domestic investors, or foreign investors. The amounts are not very large in terms of the total value of U. S. equities, but as long as demand is there, it will push the market up or at least hold it steady. The slightest loss of confidence, with an effort to pull money out, would lead to huge declines.