|
|
Article: Mutually assured destruction? (mutual funds) (Column)
- Article from:
- The Economist (US)
- Article date:
- October 9, 1993
CopyrightCOPYRIGHT 1993 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
THE love affair between American retail investors and mutual funds (unit trusts) shows no signs of cooling. In the first eight months of 1993, net sales of bond and equity mutual funds totalled $169 billion--almost as much as in the whole of 1992, itself a record year. This flood of money has been a big reason for the bull run in America's bond and equity markets lasting so long, despite their historically high valuation ratios. Foreign markets have benefited, too: in recent months Americans have been rushing into mutual funds that invest overseas. The growth of mutual funds is helping to reassure institutional investors that the much-predicted market "correction", or even ...