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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (14251)	2/17/1998 9:48:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 18056

Mike: My 401K plan only gives me stock funds, and a "stable value" fund that consists of corporate short-term securities. Unfortunately the 401K system, the mortgage market and the insurance market really creates a huge steady stream of captive buyers--something that didn't exist in 1929. The pension plans buy the index- it's safe. although I can find many small company stocks that are healthy and attractively priced, they are not purchased for my 401K. This thing that drives up the S&P and DOW is institutional fund buyers that need huge blocks of shares-- they can't get out quickly, and they calculate the value of the stock out many years in the future at future interest rates to decide to buy. It is frustrating to watch. Maybe the tide will turn soon and people will demand bond funds-- but I don't have that choice.