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In a message dated 2/10/00 5:09:35 PM Pacific Standard Time,
lswope@xxxxxxxxxxx writes:
<< I heard today there were record mutual fund cash inflows this month. Is
anybody else seeing this kind of unusual buying in a downtrend? Am I missing
something obvious?
>>
Hi Linda,...
This is Jim Pilliod. I believe the thing to watch regarding recent
mutual fund cash flows is WHERE the cash flows are going.
For instance the record inflows discussed in the news yesterday,...
(by Charles Biederman of www.trimtabs.com),...focused on
$21 Billion inflow into equity funds for the first seven days of
January,...the highest amount since $29 Billion during first
seven days of January 1997. Most importantly,..Trim Tabs
notes all the incoming money is going to TECH funds,..
Aggressive Growth funds,..etc. Nothing else. So money is
coming out of previous favorite S&P500 Index type funds and
going into Technology Funds. Also worth reading is a special
report Trim Tabs put out late last year,....here is the link:
Special Report-Dec. 27, 1999
or..... http://trimtabs.com/dects.shtml
As a personal aside,..it is hard for me to imagine an ever
narrowing focus on the technology stocks being the catalyst
for a surge higher in the S&P500. Tech valuations will get
maxed out, and some point,..and weakness there will weigh
on the S&P500 (which is now comprosed of 32% Tech stocks)
as opposed to boost it higher. Just my thoughts.
Regards, Jim Pilliod jpilleafe@xxxxxxx
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