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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (5518)	12/16/2001 10:37:13 AM
From: ldo79	Read Replies (1) \| Respond to of 36161

Here are a couple of good ones for the "herd" to contemplate when they open their quarterly/annual 401k/IRA statements. It'll get real interesting when these examples hit home. "Money market funds that let yields drop below expense rates. Money funds are supposed to be safe, no-lose investments. But as interest rates dropped this year, a remarkable thing happened: Expenses in high-cost funds outstripped yields. That's how Invesco Cash Reserves Class C saw its 7-day yield (what you earn after expenses) drop to 0.01 percent last week. At that level, a $10,000 investment earns $1 per year. On $1,000, the postage to mail your check swallows three years of returns. If this keeps up and expenses aren't waived, the yield will go negative, making the fund inferior to a piggy bank. At any given time, about half of all money funds eat some costs to increase yields. Not our winners: Currently, some 51 money funds have expenses above 1.25 percent, a level high enough to swamp their yield if they don't do something soon." boston.com and Funds with Modest Losses Look Good NEW YORK (Reuters) - Stock picker Zach Shafran has had a rough year. His Waddell & Reed Advisors Science and Technology mutual fund (Nasdaq:UNSCX - news) has been hit by the stock market sell-off and is down nearly 15 percent since January. But wait -- Shafran actually is one of this year's winners. His fund has performed better than at least 90 percent of its tech fund peers -- which are down an average 35.3 percent so far this year, according to fund tracker Morningstar Inc. Investors are smarting from big losses in the stock market slump. The people who manage their mutual funds hate losing money too, but often they are more concerned about how they perform against their peers. It's one of the ironies of professional investing: It doesn't really matter if you lose money, as long as you lose less than everyone else. dailynews.yahoo.com Oh my! Regards, ldo79