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most
people do not understand stocks much less bonds and second greed is powerful and
many w/ the largest 401k are all so relatively young and willing to take risk
and lastly most people do not like or want the government telling them how to
invest.
<FONT face=Tahoma
size=2>-----Original Message-----From: Daniel Goncharoff
[mailto:thegonch@xxxxxxxxxx]Sent: Friday, January 18, 2002 7:51
PMTo: realtraders@xxxxxxxxxxxxxxxSubject: [RT] 401k
ReactionI notice the general media is starting to
concentrate on the harmsuffered by Enron employees that had large
investments in company stockin their 401k and were burned when the manager
was changed (freezing theaccounts) at the same time the stock plummeted to
almost nothing. Adviceis being given for employees of other companies to
look at their own401k and diversify.My gut reaction is that this
has to be bad for stocks and good forbonds, given the current condition of
the stock market and the likelyconservatism of the 401k holders. (Once you
have made the decision todiversify, are you really likely to do so in a
risky fashion?)Does anyone have any thoughts about how individual
stocks may beaffected? I would think recently successful companies will be
more proneto being 'diversified down', companies that have done very well
over thelast 3-5 years. These companies will be more prone to having
createdlarge involuntary concentrations of risk for their employees
accounts.The ultimate example may be MSFT, which has continued to make
itsemployees very wealthy, has been successful in any reasonable time
frameyou choose, and is now subject to ongoing legal action of
indeterminatesize. Would you keep you millions in retirement dough in MSFT
stock, orwould you, in light of the Enron case, look to sell MSFT and put
yourmoney elsewhere?Your thoughts would be
appreciatedRegardsDanGTo unsubscribe from
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