Wall Street: signs of panic
Article Abstract:
There is concern that US mutual funds could sell shares leading to a general drop in share prices as panic sets in from a short-term correction. Mutual funds are still receiving flows of money and though the amount dropped in Jun 1996 relative to May 1996, it is still above Jun 1995. Retail investors may sell funds that do not perform well and Fidelity may have been the subject of such selling. The stock market crash of 1987 allowed investors to buy cheaply and share prices rose again.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Wall Street: bond-driven
Article Abstract:
US share prices have risen in Nov 1996, though shares in larger companies have risen by more than shares in smaller firms. Share price rises have been linked to drops in bond yields rather than corporate earnings. Share prices seem high in relation to some measures such as dividend yields, but not in relation to bond yields. This means that share prices may continue to rise while bond yields stay low, but shares would be less attractive to investors when bond yields rose.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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