By now, everyone has heard all the doom and gloom surrounding the pension fund entitlement programs around the nation. Of course, GM and Ford are getting the most attention. This being said, we cannot ignore a fundamental shift taking place as companies try to replace their entitlement programs with 401k's.
On the surface, it seems cruel to take away something like a pension fund, but the changes are inevitable. In order to remain competitive in the global market place, pension funds must be replaced by 401k plans.
Since GM has been one of the worst performers for the year, I have got to believe that 2006-2007 will bring a turnaround for the company. I am not placing the stock in the IA portfolio, but for speculators/contrarians, this is an interesting bet.
GOOGLE:
On the opposite side, I have not seen this much hype in a stock since the internet craze of the late 1990's. As bad as I want to short this puppy, I think I'll wait and see if the stock can get in the high 400's. Once again, brokerage firms are falling over one another to recommend this stock. Once the bubble bursts, a person short at $475+ may be able to make a quick 25%.
THE FED:
Everyone is expecting at least 1 more rate hike to the 4.5% range. Since everyone is expecting this, my target has been raised to the 4.75-5.0% area before the Fed calls it quits.
INCOME IDEAS:
Bill Gross from Pimco has been putting his money where his mouth is. If you are looking for income at depressed prices, you might want to look at the two recent purchases by Bill Gross:
Pimco Floating Rate Income Fund (PFL)
Pimco Floating Rate Strategy Fund (PFN)
HERE'S ANOTHER VIEWER QUESTION
john:
if you noticed, a director bought 5000 shares of COO..do you think that is a good sign? or is it just to inflate the stock?
i mean the quantity is not big, but this is the very first insider buying in this company.
Thanks
These insiders seem to be very savvy, not to mention timely. I saw the buying yesterday on COO, and a director bought another 1000 @ $48.29. I don't see anything wrong with accumulating the stock.
Cooper operates in two segments, CooperVision and CooperSurgical. CooperVision develops contact lenses, and CooperSurgical is involved in products used by gynecologists and obstetricians.
The healthcare sector will remain in favor as the economy continues to soften. I think a purchase of COO shares would be timely.
Comments (1)
Pensions are not "entitlement programs." A pension is a part of a workes pay. It is the part paid at the end of a career instead of at the end of a pay period. Every company with a defined pension plan knows they have to set aside money for this just as they set aside money for regular payrolls. Anything else is fraud.
Posted by Max | December 22, 2005 11:03 PM
Posted on December 22, 2005 23:03