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To: John Harton who wrote (4842)12/13/1998 8:38:00 PM
From: Gersh Avery  Read Replies (1) | Respond to of 11051
 
Hi John Re Laundry list

You are correct about having a list to choose from.

Many 401k programs do not even have the option of money market (cash) funds to choose. For those folks, the only choice is which mutual fund does the money go into. Most folks do have some sort of cash option. Folks can elect to change the amount and direction of 401k contributions. For instance, in the program that I'm involved in, I just switched all accumulated funds from a small cap fund to the "fixed interest" option, along with redirecting all future contributions to this same option.

I believe that what these outflows represent is the small guy deciding to take some chips off the table. Cash being moved from stock funds to cash funds.

If this is indeed a market top then Joe six pack has learned to sell the top .. Not good news.

Gersh



To: John Harton who wrote (4842)12/14/1998 12:23:00 PM
From: Berney  Read Replies (1) | Respond to of 11051
 
John, Re: FOP

Okay, I give up trying to guess what it means: Fraternal Order of Police, Fools On Parade?

It is my experience that the little guy probably couldn't tell you what his/her 401K allocation is. They are definitely not the ones going in and out of the market.

I think that the 80/20 rule comes into play. For example, 20% of the people pay 80% of the taxes. I imagine that the investment pot is even more extreme.

Berney