Nobody disputes that the European mutual fund industry is presently hotter than mustard. The evidence is overwhelming. Recent figures show that inflows to European equity funds in the first two months of this year were five times higher than for the same period in 1999.

According to Lipper, a fund industry analysis service, the size of the European investment fund market is expected to reach €3 trillion ($2.9 trillion) during 2000, and €8 trillion by 2005. It seems that the classic European investment strategy - buy domestic bonds and wait - is finally being replaced by a willingness to buy equities, even though that may lead to tears if the issuing companies happen to be dot-coms.