Untitled

Our Research — October 31, 2002

Examples of Mutual Funds Outflows Not Beginning Until The Public’s Breakeven Point Is Crossed For years we have been tracking the public’s average purchase price, or their “breakeven” point, for mutual fund holdings. It has been our contention the public will continue to put money into mutual funds (positive inflows) so long as their average… Continue reading Untitled

Open Examples of Mutual Funds Outflows Not Beginning Until The Public’s Breakeven Point Is Crossed
For years we have been tracking the public’s average purchase price, or their “breakeven” point, for mutual fund holdings. It has been our contention the public will continue to put money into mutual funds (positive inflows) so long as their average purchase price or “breakeven” rate is below current market levels. When this situation is present, this means the public is holding an unrealized profit. When dealing with profits (“the house’s money”) they will be optimistic/aggressive and believe in a market’s long-term potential.