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Re: Stock Funds Lure Most Cash in 13 Years as Market Rallies 

By: Zimbler0 in FFFT | Recommend this post (1)
Fri, 22 Nov 13 6:29 AM | 47 view(s)
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Msg. 58157 of 65535
(This msg. is a reply to 58106 by clo)

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Investors are pouring more money into stock mutual funds in the U.S. than they have in 13 years,
>>


I learned my lesson in 2000.

Eventually, this party will end badly. But, that
should also provide a sweet buying opportunity.

For those who have put all their money into stock
mutual funds . . . Had I been in that position and
trying to live off them in 2000 . . . I would have
been bankrupted by 2003. In 2000 the markets took
a dive - drastically reducing my 'cash value'. At
the end of 2000 stock mutual funds had a decent pay
out (By law mutual funds must pay out capital gains).

Of course, the payout reduces the value of the mutual
fund even further. Reducing ones net worth. 2001
and 2002 stock mutual funds did not pay anything worth
talking about out. Meaning if one was counting on
living off one of them one would have had to sell
shares for grocery money - further reducing ones
asset base.

End of 2003 one of the three stock mutual funds I
then owned some of finally paid out . . but not a lot.

So, What to do? Own a mix of stocks and bonds.

Dominion Resources is my local power company. They
have not missed or cut the dividend since 1997 - when
I first started buying it.

Zim.




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Mad Poet Strikes Again.




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The above is a reply to the following message:
Stock Funds Lure Most Cash in 13 Years as Market Rallies
By: clo
in FFFT
Thu, 21 Nov 13 7:03 PM
Msg. 58106 of 65535

Stock Funds Lure Most Cash in 13 Years as Market Rallies
By Charles Stein - Nov 21, 2013 12:00 AM ET

Investors are pouring more money into stock mutual funds in the U.S. than they have in 13 years, attracted by a market near record highs and stung by bond losses that would deepen if interest rates keep rising.

Stock funds won $172 billion in the year’s first 10 months, the largest amount since they got $272 billion in all of 2000, according to Morningstar Inc. (MORN) estimates. Even with most of the cash going to international funds, domestic equity deposits are the highest since 2004.

more@Bloomberg.com


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