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Originally Posted by soupcxan
And how will their cost structure support it?
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Maybe we should reframe the question:
Quote:
Originally Posted by soupcxan
And how will their cost structure my fund expenses support it?
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The ICI, admittedly a somewhat biased source of info, claims that a huge amount of retail money is sitting on the sidelines:
Why Small Investors Are Shying from Stocks - BusinessWeek
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According to the Investment Company Institute, since last year's market bottom investors have pulled $24.6 billion out of mutual funds focusing on U.S. equities; over the same period, they've channeled $455.6 billion into bond funds.
The Fed says households have $7.8 trillion in bank accounts and money funds. That's almost a record high in relation to disposable personal income, according to Wells Capital Management. "Retail investors have massive dry powder and remain woefully underexposed to risk assets," says James W. Paul-sen, the firm's chief investment strategist.
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As these "investors" realize what they're getting in CDs & bond funds, I think Vanguard is hoping to capture some easy money and realize more of that fabled "economy of scale".