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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Jags who wrote (2182)	10/17/1998 9:16:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 3339

Well, what tends to happen in a market decline is that mutual funds maintain approximately the same amount of cash, or perhaps increase the amount held somewhat, but as the equity value of the funds decreases, the cash becomes a larger percentage of the total assets. It does not appear that funds are yet selling stock to increase their cash holdings, since for many years managers who did that have looked foolish. To hold onto your job it is better to be part of a large crowd that is wrong than to be right--at least until things get very tight. So far the "wisdom" is still to be as close to totally invested as possible. Think how embarassed a fund manager must be to be sitting on 40% cash after that cut by the Fed!