WASHINGTON -- If
opened an Internet-focused fund it would attract $3 billion in assets in its first month, says the firm's president, Robert Pozen. But it's not going to happen.
Speaking to reporters Thursday at the annual meeting of the
Investment Company Institute
, the fund industry trade group, Pozen said Fidelity has no plans to open an Internet fund and doesn't want to add to "speculation" in Internet stocks.
Besides, he asked, "What is an Internet company? Pretty soon you'll get a GM.com, and they'll sell cars over the Internet." But that doesn't make it a pure play, he said. "The Internet is really no different than anything else. You try to pick the companies that will do well."
Resist Stocks' Siren Call, Says Brennan
Investor, be not seduced by that mouse.
As the flow of money into mutual funds has been slowing and the value of active management is being increasingly questioned,
president Jack Brennan offered an interesting statistic in support of fund investment:
During the third quarter of 1998, 1,600 stocks lost 50% or more of their value, out of a universe of 7,000. By comparison, only seven mutual funds -- also out of about 7,000 -- had equivalent losses, he said.
"At a time when substantial efforts are being made to seduce ordinary investors into becoming day traders," he said, alluding to the proliferation of online brokerages, "this is an especially powerful reminder of the value of investing through mutual funds."
It's not the first time Vanguard has decried the dangers of the technological world. The company shut down its Technology fund in 1994, citing concerns that investors were trying to time the market.
Here's Why We Don't Like Mondays
Over a 30-year period through 1984, the worst day of the week for the market has been Monday, says Peter Lynch.
"Through 1984, Monday's sucked. People become portfolio managers over the weekend," the legendary former manager of the
Magellan fund told reporters.
Lynch also pointed out that there have been some miserable Mondays since 1984, as well. The big market crashes of Oct. 19, 1987 and Oct. 27, 1997 were on Mondays, as was the recent Nasdaq selloff on April 19.
"So just keep that in mind," says Lynch.