Anonymous, I liked you post.
First of all, I agree completely that 401K plans are propping this market up. I think lots of my favorite stocks, Microsoft, Dell, Lucent, AOL, are ridiculously overvalued based on any traditional accounting methods, but the funds need somewhere to safely stash all those billions that keep pouring in. That's why I love these stocks so much! Don't know how long it will last, but we have this demographic anomoly of the boomers who keep stuffing the mutuals, so i think the ride has several years left to it.
And I also reiterate that I think we are in the beginning of a good slide, and it happens every year and sometimes twice a year, so what's the big deal. I embrace it, and even look forward to it, because that's what creates the great prices. Just don't be foolish enough to buy into it until it hits a good bottom.
I always get a kick out of people debating the merits of different mutual funds. To me all they are good for is to churn the markets. The index 500 is the best fund. Sure there are sector funds, and some various funds that beat the SP 500, but most of the thousands of them don't, so what good are they? The 'growth' fund we are offered where I work has over weighted itself in ARCO and Texaco thus has suffered while the rest of the market was going up. And I bet the manager made more than a million in salary and commission!
Anyways, nobody worry about LU because it will go up when the market straitens out. Don't try to fight the tape, when things turn around LU will be a leader along with MSFT, DELL, AOL, CSCO in sending tech even higher again. |
