Friday, March 06, 2009

Market Capitulation are Mutual Funds Next?


Rumors are starting that a couple of mutual funds are in trouble. I can't confirm or deny at the moment.

Earlier this week I wrote about the increase in investors calls to both Vanguard and T. Rowe Price. See Investors pull $33 Billion out of Market.

When investors get scared, and they can't take it anymore, they often dump all their stocks. A form of the madness of the crowd--they sometimes do this in unison. Imagine 100,000s of investors all pushing the panice button at the same time. There are somewhere in the neighborhood of 88 million investors in the United States.
Could we be on the verge of a market capitulation?

See: Market Capitulation Means Big Opportunity to Make Money and S an P Support 659 and dropping, Market Capitulation?
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Bob DeMarco is a citizen journalist, blogger, and Caregiver. In addition to being an experienced writer he taught at the University of Georgia , was an Asociate Director and Limited Partner at Bear Stearns, was CEO of IP Group, and is a mentor. Bob currently resides in Delray Beach, FL where he cares for his mother, Dorothy, who suffers from Alzheimer's disease. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. His content has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, BlogCritics, and a growing list of newspaper websites (15). Bob is actively seeking syndication and writing assignments.



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