Below is what I sent out to the Assistant Director of our Department in early February of 2006. The Director was also aware of my observations. It was my hope they would bring these opinions forward in one of the “Directors Meetings”.
I now understand why my thoughts were never forwarded to the “inner circle” of 401K portfolio decision makers. They already had their opinions. They weren’t interested in mine.
This is what I wrote on February 9th, 2006:
There are no options in the “401K portfolio of possible investments” that seriously consider a bear market. They are all skewed to bull markets.
Consider the possibilities with this:
http://www.forbes.com/investmentnewsletters/2005/05/13/cz_js_0513soapbox_inl.html?partner=netscape
When they are jumping out of windows we could be protected with the option of bear funds, something we currently do not have.
The best we can do is put our “bucks” in “stasis”, the “Guaranteed” option shown below (screenshot not provided here).
Of course, while in that “holding pen”, our dollars might be turning to being useful for starting fires…
Alas, nothing in the portfolio is seriously geared toward foreign currencies, commodities, metals, or bear markets as a means of “diversification”.
They all depend upon a never-ending “we’re in the money” delusion – reminds me of the Twenties.
Entries (RSS)