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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: SI Bob who wrote (29108)	11/28/2007 1:28:32 PM
From: Paul Senior	Respond to of 78710

Asset managers: It's been a disappointing year for me with almost all the asset managers shares I'm holding. Still, my intent is to hold my shares --- WPL, LM, DHIL, GROW, CNS, others. As I see it, on the one hand, as people exit the stock market if/as their stocks drop, then the assets under management and consequent fees and earnings of the asset companies drop. And if people turn from equity funds to bond funds or just stay with bond funds, bond funds are far less profitable for the fund companies. OTOH, I presume contributions to IRAs are increasing, lots of people are still working, and more people are retiring... these may be positives. If stock prices of these aum companies get low enough, I suspect we will see more consolidation in the industry. This has been an industry where growth through acquisitions has been prevalent. All jmo. I could be wrong.