Is the Ride of the Bull Over?

You may be doingthe wise thing to take some of your Money Making Funds

out of the stockmarket. Some analysts are predicting that the ride of the bull is over. Price/earnings ratios are too high, interest rates are going up, and a lot of
big institutonal investors will be investing more in the bond market.

Get your Money Making Funds at Wachovia.

Now you can also buy stocks, bonds, funds, and all kinds of Money Making Funds

at Wachovia.
Perhaps Donald Trump is right, we may need an Alan Greenspan to guide the economy. The economy had its worst quarter in more than 4 years.

Ralph Lauren and Polo

Ralph Lauren is going great guns. It's nice to see a company with such great products
do really swell.

Stay Home this weekend, save your money

McDonald's earnings keep on growing. There has been quarterly earning growth for the
past 4 years. You will be paying dearly to travel this holiday weekend. Gas is at
its highest price ever.

What's going on? Bill Barker's Viewpoint

Please read this article published on the Motley Fool Website at
http://www.fool.com/personal-finance/retirement/2007/05/22/todays-historic-bubble-and-the-one-guarantee.aspx.
Today's Historic Bubble and the One Guarantee
By Bill Barker May 22, 2007
101
Recommendations
Recently, you may have seen that there have been wide divergences in opinion about whether we're in the most spectacular bubble ever seen, or at a pretty decent time and place to invest new funds.

Such is always the case.

This time around, Jeremy Grantham, well-known skeptic, who has called a few bear markets correctly in his career, has written to his clients that we are in the middle of a bubble of historic proportions. "Everything is in bubble territory," he says. "Everything. The bursting of this bubble will be across all countries and all assets."

Yikes.

Seriously, yikes
Bubbles are a scary thing. The mere use of the term portends losses of 50%, 60% -- even 80% for broad asset classes. Something as prominent as the Nasdaq 100 (Nasdaq: QQQQ), led by stalwarts such as Microsoft (Nasdaq: MSFT), Cisco Systems (Nasdaq: CSCO), and Amazon.com (Nasdaq: AMZN), managed to lose 80% of its value between 2000 and 2003. Today, the most popular place to look for a bubble is the international markets, with indexes captured by exchange-traded funds such as iShares China 25 (NYSE: FXI) or iShares MSCI Brazil (AMEX: EWZ) getting the most attention.

Meanwhile, Warren Buffett, long-term investor extraordinaire and occasional soothsayer about overpriced markets himself, has been very recently quoted as saying that today's prices, while not exceptionally cheap, are nevertheless acceptable.

Who's right? And is it necessary to know who's right before getting started investing?

Always trust the Australians
On this point, I'll defer to Australian personal finance writer Noel Whittaker, who I think sums up a truism about the market as well as I recall ever seeing. He writes, "Life is full of uncertainties. Future investment earnings and interest and inflation rates are not known to anybody. However, I can guarantee you one thing ... those who put an investment program in place will have a lot more money when they come to retire than those who never get around to it."

The truth is that there are always extremely well-informed opinions by investors with solid track records stating that now is not the time to invest. And it may not be. It certainly isn't the exact moment in time to put all of your money into one limited asset class -- but only because it never is. Whether today's mispriced asset class turns out to be international stocks, domestic small-cap stocks, real estate, junk bonds, gold, baseball cards, or oil futures -- no one can guarantee. (Though many will have opinions.)

The Foolish bottom line
The key to a healthy and happy retirement is to have a savings and investment plan, start as early as possible with it, allocate savings into a diversified portfolio, and have the discipline to keep it up over as many decades as you have available.

The usual carrot -- and it's a great one -- to get investors to start early with their savings, and to remain disciplined in adding to their investments, is to show the spectacular returns available through investments' compound returns. This page here should convince you.

If you're interested in learning more about how asset allocation can keep you away from truly suffering from any burst bubbles, how keeping the costs of a lifetime of investing at the minimum radically alters your retirement, and how adding small bits of judiciously managed higher-potential-rewards stocks to your portfolio can keep you pointed toward a fabulous retirement, take a 30-day no-risk free trial of Robert Brokamp's Rule Your Retirement service. We've had great success in helping to educate our readers about the rewards of a lifetime of saving, planning, and investing. That's our one guarantee.

Bill Barker does not own shares of any company mentioned in this article. Microsoft is a Motley Fool Inside Value recommendation. Amazon.com is a Stock Advisor pick. The Motley Fool has a disclosure policy.

Watch you Funds carefully

Do you have any Money Making Funds

indexed to the Dow. The Dow went briefly over
13,600. Will it make it to 14,000. Is there still steam left in the bull? Is
the market overheated? Should I be buying or selling?

The Bull is not out of energy, yet

S&P reaches was less than 3 points shy of its all time record set in March, 2002.
Great news if you have money invested in an index fund tied to the S&P or if
you have a federal employees thift savings account invested in the C fund.

China and U.S. - Cozy Financial Partners?

China is investing billions of dollars in the fund investment company, Blackwell.
Blackwell also plans to sell shares in the State ran China Stock Market.
After Japan, the United States owes the greatest proportion of debt to China.

Dieter Zetsche is Happy

Dieter Zetsche seems delighted to be loosing control of Chysler. Even if they did
loose money. Now he just wants to make Mercedes Benz better.

Greenspan to work for Plimco

Alan Greenspan is now working as a consultant for an investment company. This company has the largest bond fund on the market. So how would you like to have Greenspan giving advice
to your Money Making Funds

?

What's Up with Ford?

Will the Ford Family sell some of their stock in the Ford Motor Company? It would be selling
stock for much less than it was in 1999. Same say the company would be better off, if the
family relinquished some of their control. William Ford has drawn criticism for how he has
ran the company.

Go Green, Save Money

Put more money in the bank by going green. Save money. And you can purchase these new
fangled light bulbs at Walmart. Not only do they save you money(25% with the Power Company); they lasts much longer. Then maybe you can afford to fill up your car.

Go Green, Save Money

Put more money in the bank by going green. Save money. And you can purchase these new
fangled light bulbs at Walmart. Not only do they save you money(25% with the Power Company); they lasts much longer. Then maybe you can afford to fill up your car.

Go Green, Save Money

Put more money in the bank by going green. Save money. And you can purchase these new
fangled light bulbs at Walmart. Not only do they save you money(25% with the Power Company); they lasts much longer. Then maybe you can afford to fill up your car.

Will gas be $4 a gallon this summer?

Some are predicting that gasoline prices at the pump this summer may reach $4.

It wouldn't hurt if you had Money Invested in a S&P index fund

If you have your money making funds Money Making Funds
invested in an S&P index fund, you would be in high cotton now. It almost beat its 2,000 record
high yesterday.

What's the Future of the Wall Street Journal

Are any of your
Money Making Funds

invested in the Wall Street Journal? The Bancroft
Family owns over 60% in voting shares. Will they be willing to part with their
beloved Dow Jones Company for $5Billion?

Is the Stock Market over heated?

Will the market go to 14000 by end of year or is the great ride of the bull about
over?

Is the Stock Market over heated?

Will the market go to 14000 by end of year or is the great ride of the bull about
over?

Dow tops 13000

If any of your Money Making Funds is indexed to the Dow Jones Industrial Average,
you have great reason to celebrate. Today the Dow broke the 13,000 barrier.

Money goes to corner gas station

Wanted to put away more for Money Making Funds , but the price I'm paying at the pump eats
up my wallet.

Will Dow Close over 12,000 today?

The Dow went over 12,000 this morning .

U.S. economy is making modest growth

U.S. economy grows a little, interest rates on mortgages go down, the price of oil is down.
How sad this week has been with what happened in Virginia. But think, this is what people
in Iraq experience on a daily basis.

Reform the gun laws.

It seems unbelievable that hand guns are so easy to purchase in this country. It's not as if you
need them to hunt deer, ducks, or other game. I can see why rifles should not be outlawed.
But it is rather obvious carrying around a long rifle. It's not like you can conceal it.
It is really a shocking tragedy, the kids in Blacksburg are having to cope with.

Exxon Mobile continues as most Profitable

Banks are doing very well in profits, at least the large ones are. Citi-bank
and Bank of America were 2 of the most profitable businesses in U.S.
Exxon Mobil was the most profitable.

Banks are very profitable

Citi Bank and Bank of America were two of the most profitable businesses in the United States. Wachovia grew its profit by 33%
Walmart did the most business, but Exxon Mobile had the highest
profit.

Close ended Funds are the Rage!

ETFs have been all the rage this year! ETFs are Exchange-traded Funds which sell like stocks,
instead of like open ended funds (mutual funds). The Closed-end Mutal Funds are now a hot
commodity, receiving millions of dollars which previously would have been invested in the open
ended Money Making Funds .

Great World Economy

The World Economy is suppose to be in a good state. It has had the longest period of expansion since the 1970s. In the U.S. Ecnonomy, houses are at their lowest in 40 years. The stock market
seems to be waiting on news of whether or not interest rates will rise.

What's in the future for Trains?

Are any of you invested in the rails. What does Buffett see in his crystal ball? Could what the
French are achieving on the tracks these days have somethng to do with it? I never thought I
would see the day when it would be a good thing to have your Money Making Funds invested in rails. Things change.

Warren not only gets his picture made.

Warren Buffet and Bill Gates have a photo op session with Hooters girls. Buffet loads up on
Railroad stocks. Guess what, railroad stocks are going up.

Stock Market bull is inching up

Stock Market had a great week, during holy week. British sailors and Marines are home now.

Iran struts its stuff

It looks as if we appear weakened by the Iraq War. Iran, North Korea, and no telling where else
next seems to have no fear of U.S. or west. And all the years people have been screaming for
alternative fuel sources, the U.S. has become more and more dependent of the Middle East.
Some are saying we make be paying $5 a gallon at the pump. It's already $4 a gallon at some
California gas stations. Hopefully how the Iran is treating Great Britain will unite the West.
With the price of gasoline going up, that's leaves you with less money to invest in
Money Making Funds

You can now buy Delta on the N.Y. exchange

Iran is scared of us. What will Tony Blair do? The U.S. Navy puts on a show.
Bernacke is worried of inflation. Oil prices rise, home prices tank. Delta begins to
trade its stock on the New York Stock Exchange again.

From The Motley Fool's Website

General Investing
Choose a Broker
ETF Investing
Index Funds
Mutual Funds
Stock Ideas
5 Recommendations
A First Look at Blackstone
By Matt Koppenheffer
March 23, 2007
Well, it's happening after all.
After talk of an IPO from the Blackstone Group made its rounds through the rumor mill, the firm and its underwriters made the plans official by filing an initial S-1 with the SEC. I took a look through Blackstone's 300-plus-page filing to give you Fools the skinny on what exactly the IPO is bringing to the market.
This is the initial filing, and Blackstone and its underwriting team still have the revision process with the SEC to look forward to, so a few segments are still just skeletons. Though the filing currently has Blackstone looking to raise $4 billion, the offering's price range is one obvious blank right now. The other areas left blank for now mostly relate to how the offering will be priced and what ownership stake the new shareholders will have in the company. Unfortunately, the compensation for CEO Stephen Schwarzman is another area that's still "to come."
And speaking of Schwarzman, I'm going to ignore for now the irony inherent in Blackstone's IPO. That a company responsible for taking multibillion-dollar companies out of the public markets would want to have the scrutiny and burden of being a publicly held company is a topic for another day. For now, let's take a look at some of the highlights.
The bizWho says there's no business like show business? I'd say there's no business like alternative asset management, but it doesn't sound nearly as snappy.
Blackstone's alternative asset management business is comprised of an assortment of funds that manage billions of dollars for pension funds, insurance companies, high-net-worth individuals, and endowments. In total, Blackstone manages $78.7 billion in capital as of March 1, and the funds break down as follows:
Corporate private equity. Blackstone is probably best known for its corporate private equity investing, not just because it has an obscene amount of capital at its disposal, but also because it's also been one of the key players in the recent private-equity assault on the public markets. Corporate private equity makes up roughly 40% of the money Blackstone manages, and these funds have put up a fee-adjusted internal rate of return (or IRR, a measure of aggregate annual returns) of 22.8% since 1987. Some of the notable investments these funds have made over the past few years include Freescale Semiconductor, The Nielson Company (formerly VNU), Michael's Stores, Deutsche Telekom, and SunGard Data Systems.
Real estate opportunity. While corporate private equity is definitely the headliner at Blackstone, it could easily be argued that the real estate fund has stolen the show lately. This has been thanks to the recent win over Vornado Realty (NYSE: VNO) to buy out Sam Zell's Equity Office Properties for $39 billion. At least for now, it is the largest take-private transaction ever. Since Blackstone started its real estate investing back in 1991, the funds have managed to return a 29.2% fee-adjusted IRR. Other recent real estate investments include LaQuinta Inns, Wyndham International, and Extended Stay America.
Funds of hedge funds. They're just like they sound -- a fund of hedge funds puts an extra layer between hedge fund investors by distributing investor money (and risk) over a number of different hedge funds. This adds another layer of fees on top of already high hedge fund fees, but Blackstone's fund-of-fund fees are about half that of the typical stand-alone hedge fund. These funds manage $17.1 billion of Blackstone's total assets under management, and have returned just shy of 12% per year since they started in 1990.
And the rest. The remaining $12.8 billion of Blackstone's AUM is distributed among a few other vehicles, including debt funds, hedge funds, and closed-end mutual funds. The hedge funds and mutual funds are new to the Blackstone family. Though it's had the fund of funds for 17 years now, the firm just started a distressed securities hedge fund in 2005 and an equity-focused hedge fund in 2006. Both closed-end mutual funds, India Fund (NYSE: IFN) and Asia Tigers Fund (NYSE: GRR), were started in 2005.
Blackstone brings in fee revenue through these funds via management fees, which range from 0.5% to 2% of AUM. The firm also takes overrides of 20% of the profits from the funds (past a certain threshold), and it benefits from investments it makes in its own funds.
In addition to its well-known asset management business, Blackstone also has a financial advisory arm that does M&A advisory, restructurings, and fund placement though Park Hill Group, which it formed in 2005. While it may not be as familiar a name in advisory as Goldman Sachs (NYSE: GS) or Morgan Stanley (NYSE: MS), Blackstone has a pretty impressive client list that includes the likes of Microsoft (Nasdaq: MSFT), Kinder Morgan, Procter & Gamble, W.R. Grace, and Winn-Dixie.
The maze of holdingsInvesting in Blackstone is not quite as straightforward as investing in, say, Apple, where you own shares that represent an equity position in the Apple operating company. Similar to fellow alternative investment IPO Fortress Investment Group (NYSE: FIG), Blackstone has been set up in a holding-company structure, so it's useful to know exactly what common shareholders will actually own.
The Blackstone Group L.P. (TBG for short) has been set up as a holding partnership that, in turn, holds 100% ownership of five separate holding companies (we'll call them Holdings I). Holdings I is the general partner to five other holding companies that are the actual Blackstone operations (we'll call these Holdings II). A general partner is the partner that actually manages the partnership, as opposed to the limited partner, which does not.
Holdings I will have a percentage ownership in Holdings II that will be determined later in the IPO process, while the rest of Holdings II will be owned directly by Blackstone's senior managers and other current owners. Economically speaking, TBG's primary assets will be its interests in Holdings I, which will be entitled to its pro rata share of the fees and investment income from Holdings II. Ipso facto, each TBG shareholder is basically a claimant to a portion of a portion of the income of Blackstone's operations.
Still with me? A separate entity called Blackstone Group Management (BGM) will be 100% owned by Blackstone's senior managing directors and will be the general partner of TBG. Though BGM will not have an economic interest in TBG, it will have exclusive say over just about all important governance issues.
The priceGiven Blackstone's past success, the size and firepower of the firm, and the current mania around alternative investments, I can't imagine that the offering won't be really well received. The question is what kind of valuation it will garner. The U.K.'s Man Group is probably a decent comparable firm, since it's an alternative asset manager with a captive brokerage arm. Man's stock trades at around 18 times trailing earnings, and has a total market cap equal to about one-third of its AUM.
Using Blackstone's FY2006 as a proxy for trailing earnings, these metrics would give Blackstone a total value of somewhere in the $30 billion to $40 billion range. Of course, that's assuming that you're comfortable using FY2006, which was a particularly good year for the firm and may not be indicative of the future.
More detail is sure to emerge soon enough, as the banking team feels out the market for Blackstone's shares. If the offering ends up being anything like the Fortress IPO, though, pricing thoughts might be a mostly academic question. Though Fortress went public at an arguably reasonable 24 times trailing earnings and 25% of AUM, it nearly doubled before it hit the market. Today it trades at $28, which is around 36 times trailing earnings and 37% of AUM.
Despite this price, a few freshly released Wall Street analyst reports are still calling Fortress a buy. Go figure.
I think one thing is for sure though: Viva la Blackstone!
Fool on:
Private Equity, Unveiled at Last?
The Fortress IPO: Opening the Drawbridge to Hedge Funds
Marching on the Fortress
Microsoft is an Inside Value recommendation. You can check out any of the Fool's newsletters with a 30-day free trial.
Fool contributor Matt Koppenheffer would love to party it up with Steve Schwarzman -- he can feel free to give a call anytime. Matt owns shares of Goldman Sachs but does not own shares of any of the other companies mentioned. The Fool's disclosure policy sees a red door and wants to paint it black.

Email
Print
Feedback
Digg
Delicious
RSS
FREE Gift for Motley Fool Readers...
David and Tom Gardner have helped thousands of investors build wealth one market-crushing stock at a time. Now, they can help you build the wealth you deserve. And it won't cost you a cent.
Get the names of two stocks that could double in "The Motley Fool's 2 Top Picks — Plus Wall Street's Dirtiest Secret."
This new premium research comes to you straight from the desk of David and Tom Gardner. Access the full report. It's FREE.
Click here for "The Motley Fool's 2 Top Picks"(No credit card required.)
Compare Brokers
TD Ameritrade
Open Account more info
ShareBuilder
Open Account more info
Power E*Trade
Open Account more info
Compare All
Compare more info Fool Disclosure
document.write(ibHtml1);

Google News Headlines

CNNMoney.comYouTube gets a rivalComputerworld - 2 hours agoMarch 22, 2007 (Computerworld) -- In a frontal assault on rival Google Inc. and its wildly popular online video division, YouTube Inc.
SabahOracle files lawsuit against rival SAPSan Jose Mercury News - 46 minutes agoBy Ryan Blitstein. Redwood City software maker Oracle filed a lawsuit today against arch-rival SAP, alleging "corporate theft on a grand scale" by the German software company.
ScotsmanEU ministers approve 'Open Skies' pactMoneyweb - 1 hour agoEU transport ministers backed a landmark accord on trans-Atlantic air travel that will widen opportunities for both European and US carriers, notably at London's Heathrow.

How do you define a McJob?

McDonald's is upset with how The Oxford English Dictionary defines McJob. They claim it
insults their workers. The Euro is down against rising dollar.

How do you define a McJob?

McDonald's is upset with how The Oxford English Dictionary defines McJob. They claim it
insults their workers. The Euro is down against rising dollar.

Bank Merger talk causes spike in stock prices.

Barclay's Bank and ABN Amro Bank stocks are causing fireworks. Great Britain's inflation rate
rises 2.8% Boyscout found in Mountains, no foul play involved.

Two European banks are becomin one

Britain's Barclay Bank and ABN Amro (a Dutch Bank) are merging. Two Airbus A 380's take
off from Germany, one landing in N.Y. and the other L.A. Airbus is hoping to drum up some
American customers.

"What's New Pussycat?"

The two Goliaths, Microsoft and Cisc0 appear headed for the ring. Who will win in the end?
Walmart gets over its latest delusions of grandeur. Greenspan predicts a recession by year's
end.
Isn't life grand.

A whole lot of shaking going on

Walmart has it's eyes and mind on the banking business in a big way. Microsoft buys a speech
recognition firm, hoping to have computers to communicate with humans. What is to happen
with the Chicago Mercantile Exchange. Stocks are up at the moment in spite of rising inflation.
Cisco buys WebEx, a company that allows businesses to conference over the internet.

Halliburton moves corporate office out of country

Halliburton moves corporate office from Houston to Dubai.

The World's Billionaires

North state's Emmerson on Forbes list of billionaires
Jackie Farwell, Associated PressFriday, March 9, 2007
The richest of the rich
The ranking of the world's richest people as estimated by Forbes magazine includes wealth in billions of dollars and source of the money. The research for the rankings began in early 2006 and ended Feb. 9, 2007.
1. William Gates III, Washington, 51, $56, Microsoft
2. Warren Buffett, Nebraska, 76, $52, Berkshire Hathaway
3. Carlos Slim Helu, Mexico, 67, $49, telecom
4. Ingvar Kamprad and family, Sweden, 80, $33, Ikea
5. Lakshmi Mittal, India, 56, $32, steel
6. Sheldon Adelson, Nevada, 73, $26.5, casinos, hotels
7. Bernard Arnault, France, 58, $26, LVMH
8. Amancio Ortega, Spain, 71, $24, Zara
9. Li Ka-shing, Hong Kong, 78, $23, diversified
10. David Thomson and family, Canada, 49, $22, inheritance
11. Lawrence Ellison, California, 62, $21.5, Oracle
12. Liliane Bettencourt, France, 84, $20.7, L'Oreal
13. Prince Alwaleed Bin Talal Alsaud, Saudi Arabia, 50, $20.3, investments
14. Mukesh Ambani, India, 49, $20.1, petrochemicals
15. Karl Albrecht, Germany, 87, $20, Aldi
16. Roman Abramovich, Russia, 40, $18.7, oil
17. Stefan Persson, Sweden, 59, $18.4, Hennes & Mauritz
18. Anil Ambani, India, 47, $18.2, diversified
19. Paul Allen, Washington, 54, $18, Microsoft, investments
20. Theo Albrecht, Germany, 84, $17.5, Aldi, Trader Joe's
21. Azim Premji, India, 61, $17.1, software
22. Lee Shau Kee, Hong Kong, 79, $17, real estate
23. Jim Walton, Arkansas, 59, $16.8, Wal-Mart
24. Christy Walton and family, Wyoming, 52, $16.7, Wal-Mart inheritance
24. S. Robson Walton, Arkansas, 63, $16.7, Wal-Mart
26. Sergey Brin, California, 33, $16.6, Google
26. Larry Page, California, 34, $16.6, Google
26. Alice Walton, Texas, 57, $16.6, Wal-Mart
29. Helen Walton, Arkansas, 87, $16.4, Wal-Mart
30. Michael Dell, Texas, 42, $15.8, Dell
31. Steven Ballmer, Washington, 51, $15, Microsoft
31. Kirk Kerkorian, California, 89, $15, investments, casinos
31. Raymond, Thomas and Walter Kwok, Hong Kong, ages unknown, $15, real estate
34. Francois Pinault, France, 70, $14.5, retail
132. Steven Jobs, California, 52, $5.7, Apple Computer, Pixar
243. George Lucas, California, 62, $3.6, Star Wars
287. Steven Spielberg, California, 60, $3, movies
314. Donald Trump, New York, 60, $2.9, real estate
618. Archie Aldis (Red) Emmerson, California, 77, $1.6, timberland, lumber mills
664. Oprah Winfrey, Illinois, 53, $1.5, television
891. Joanne (J.K.) Rowling, Britain, 41, $1, Harry Potter


NEW YORK -- What could a Chinese dumpling maker and Mexican telecom mogul possibly have in common? They're among a record number of wealthy people who held the title of billionaire over the past year.
The tally of billionaires around the globe reached a high of 946, their combined wealth growing 35 percent to $3.5 trillion, according to Forbes magazine's 2007 rankings of the world's richest people. The north state's Archie Aldis "Red" Emmerson, 77, of Sierra Pacific Industries ranked 618th, with an estimated fortune of $1.6 billion, according to Forbes. Last year, he ranked higher on the list -- 512th -- with less wealth -- $1.5 billion.
The rich cashed in on strong equity markets, real estate and commodity prices worldwide, according to Forbes billionaires co-editor Luisa Kroll.

Credit Card rip-off

Congress is putting pressure on credit card companies for ripping off American and all.

Article from Money

.
Money 70: The best mutual funds you can buy
Unlike the target-retirement funds designed for investors still planning for retirement, the stocks-bonds mix in the retirement income funds stays pretty much the same. They're done morphing; they're as conservative as they're going to get.
As for which fund family's retirement income target fund you might buy, we at Money Magazine have included the target funds of both T. Rowe Price and Vanguard on the Money 70, our elite list of recommended funds. That's not to say other fund families' target funds won't work for you.
But we liked T. Rowe's and Vanguard's funds because they charge very reasonable fees, and because we think the stocks-bonds mix in their funds make sense for investors who want their money to last throughout retirement.
The Vanguard fund keeps about 30 percent of its assets stashed in stocks. That should be enough to give someone your age a decent amount of growth, but also provide some principal protection. The fact that some 70 percent of the portfolio's assets are in bonds and cash means the fund should also produce a good level of income.
The T. Rowe Price retirement income target fund, on the other hand, takes a slightly more aggressive stance, keeping about 40 percent of its assets in stocks. It has more growth potential, but it will also likely be a bit more volatile than the Vanguard fund, although with 60 percent of its assets in bonds and cash, it's not as if we're talking a banzai approach here. (And this fund isn't anywhere near as volatile as the 2040 fund you're currently in.)
I think either of these funds would work just fine for you. It's really more a matter of personal choice. If you're really concerned about security of principal, go with the Vanguard fund. If you're willing to tolerate a little bounciness in the value of your portfolio in return for a shot at higher returns (and possibly more income in the future), then go with the T. Rowe fund.
One final note: Target funds work best when you have all or nearly all of our retirement assets in such a fund. If you also own other funds or have other investments, you'll want to make sure that the stocks-bonds mix for your entire portfolio doesn't stray too far from the target fund's mix. You can figure out the asset allocation of your retirement portfolio overall by going to Portfolio X-Ray tool in the Investment Planning Tools section on T. Rowe Price's site. (You must register to use the tool, but there's no charge.)
So check out the target retirement income funds I mentioned and then make your switch. The next time the stock market takes a nosedive - like it did Tuesday, dropping 416.02 points - you'll be glad you did.
----------------------------------------

Imagine being trained by Warren Buffet

Stocks are going down, mortgage rates are falling, gas prices are falling in the market. Everyone
is talking about getting some good deals from falling stock prices. I read about price of a barrel of
oil falling, yet the price at the service station I buy gas in Selma overnight increased a dime a
gallon

Warren Buffet loads up on a lot of stock for Berkshire Hathaway. Also he is looking for people
to follow in his footsteps.

Suze Orman on Larry King

After Wall Street's plunge yesterday, last night on Larry King Live Suze Orman was talking
about what a good time to shop for stocks. Today Ben Bernanke calm Wall Streeters and the
market recovered 100 points.

Wall Street Journal Clip

The dollar is weaker against the yen and little changed versus the euro early Monday amid jitters over subprime-mortgage weakness and geopolitical tensions between the U.S. and Iran.
The euro stood at $1.3172 from $1.3166 at Friday's close, while the dollar changed hands at 120.51 yen versus 121.09 yen. The dollar was at 1.2305 Swiss francs versus 1.2330 francs; sterling was at $1.9623 versus $1.9635.
Also weighing on the greenback are renewed worries about central bank reserve diversification and concerns that a ...

International Herald Tribune reports Rise in Oil Prices

Light, sweet crude for April delivery rose 22 cents to US$61.17 in electronic trading on the New York Mercantile Exchange by afternoon in Europe. Brent crude for April was up by 42 cents to US$61.04 a barrel on London's ICE Futures Exchange.
Nymex prices jumped 88 cents Thursday to settle at US$60.95 a barrel, continuing a rally that analysts said has largely been driven by demand for petroleum products.
U.S. crude inventories climbed 3.7 million barrels to 327.6 million barrels in the week ending Feb. 16, the Energy Information Administration said Thursday. But what stoked the market's advance were gasoline inventories falling by 3.1 million barrels to 222.1 million barrels, and distillates, which include heating oil and diesel, dropping by 5 million barrels to 128.3 million barrels. }

Analysts were expecting, on average, a modest rise in crude oil and gasoline inventories and a smaller drop in distillates.
"Cold temperatures and refinery maintenance in the U.S. are seen to be responsible for the considerable stock draw," said Vienna's PVM Oil Associates. The high demand has been sparked by chilly weather and snowstorms in the Northeast and Midwest regions of the United States. Distillate fuel demand was nearly 10 percent higher over the past four weeks than it was over the same period last year, the EIA said.
Supplies remain relatively ample — U.S. crude, gasoline and heating oil stockpiles are at or above the average range for this time of year, the EIA said.
Natural gas futures fell nearly 12 cents to US$7.609 per 1,000 cubic feet on the Nymex and heating oil rose more than a penny to US$1.7395 a gallon (3.8 liters.)
Tetsu Emori, the chief commodities strategist with Mitsui Bussan Futures in Tokyo, said it was likely oil prices would remain within a tight range of US$57 to US$62 a barrel in the coming days.
___
Associated Press writer Tanalee Smith in Singapore contributed to this report.

Is Howard K. Stern a who done it or a victim of circumstance? Is he a real dad or just a
Bahamian Dad? Where will the blonde bombshell be laid to rest? This may not do much to
make you money, but it's all the buzz.

Dow Jones Industrial Average hits 12791.21.

CNN Headlines

Companies
• Alltel wows Wall Street
• New River bought for $2.6B
• Jury: Wyeth's HRT caused cancer
• Weyerhaeuser wins in high court
• Bob Wright's next move
Jobs & Economy
• Fed national activity index slumps
• Housing starts plunge
• Manufacturing in big drop
• Mixed reviews for new dollar coin
• Import prices sink on oil

Technology
• Viacom in deal with YouTube rival
• Motorola exec quits to join Dell
• Get-a-Mac ads backfire in the U.K.
• YouTube anti-piracy move jeered
• Microsoft falls on CEO's warning
Small Biz
• Jingles for sale
• A retro clothing business profits
• Madison Ave.'s do-it-all startup
videoSleeping to a profit
• 7 top candies

Personal Finance
• Omnicom: Advertising pays
videoEnergy saving tax deductions
• Kicking the urge to lose money
• 10 don't-miss tax breaks
• Turning $500k over to a planner
Real Estate
• Latest home prices: 149 markets
• Mortgage rates edge up
• Housing boom hangover
• How the rich and famous live
• Defaults: Latest housing w

Peter Lynch speaks

Peter Lynch suggested in his book "Beating the Street" of buying stocks in the
investment companies instead of the investment companies' mutual funds.

Wall Street Closes with highes Dow Jones Averages

The market is nearing the 1300 mark. Is it priced too high

Ben Bernake speaks

Income gap is increasing danger to U.S. economyPublished February 14, 2007
When Federal Reserve Chairman Ben Bernanke finishes his opening statement before the Senate Banking Committee on Wednesday, I wouldn't be surprised if Democrats now in control of the committee say, in the words of Peggy Lee, "Is that all there is?"Commentators in the financial markets do not expect much news from Bernanke's semiannual monetary policy report to Congress. He will bang the drum slowly on behalf of fighting inflation and portray a resilient U.S. economy.Beyond that, there's not much to say."There was remarkable complacency about most global economic issues," economic consultant David Hale told clients after attending the recent global economic conference in Davos, Switzerland."The conference was remarkably sanguine,," Hale said. "There was no tremendous concern about the global business cycle."Worries about the U.S. housing market and the looming U.S. trade and fiscal deficits are old news. Instead, the Davos elites talked about other issues: global warming and the prospect that President Bush will launch another war."Other issues" might well be on the minds of the Senate Banking Committee and the House Financial Services Committee, which he will speak to Thursday.Indeed, Bernanke has opened the door to questions beyond the usual ones about economic growth and inflation. Last week he devoted an entire speech to the Greater Omaha Chamber of Commerce to the problem of the growing income gap that divides Americans."No one should be allowed to slip too far down the economic ladder, especially for reasons beyond his or her control," he said. "Like equality of opportunity, this general principle is grounded in economic practicality as well as our sense of fairness."The speech received scant press coverage. The financial press ignored it, because he didn't give any hints about the next blip in interest rates. Political reporters don't cover the Federal Reserve.Between 1979 and 2006, those in the bottom 10 percent of wages saw their wages increase just 4 percent, while the wages of those in the top 10 percent rose 34 percent, Bernanke said. After-tax income of those in the top 1 percent of household income increased to 14 percent of total household income in 2004 from 8 percent in 1979.These statistics are not new. Neither is the subject of the income gap, which President Bush acknowledged recently.Bernanke's predecessor as Fed chief, Alan Greenspan, expressed concerns in congressional testimony in July 2004."This issue has regrettably been going on for 15 years or thereabouts," he said. "I think the effect of increasing concentration of incomes is not desirable in a democratic society."Last week Bernanke said, "If we [do] not place some limits on the downside risk of individuals affected by economic change, the public at large might be less willing to accept the dynamism that is so essential to economic progress."The statutory role of the Federal Reserve does not give it much power to address directly the issue that Bernanke raises.But in Washington, where leadership on economic matters is hard to find, the fact that Bernanke and, before him, Greenspan, felt the need to speak out on the divide between the super-rich and everyone else means the problem, like global warming, is real.----------bbarnhart@tribune.com
You can search for more columns in our archives.
Copyright © 2007, Chicago Tribune

Falling Dollar ,Euros & Yen rise in value

By Wanfeng Zhou, MarketWatch. NEW YORK (MarketWatch) -- The dollar fell against other major currencies Tuesday after a government report showed the US trade gap widened more than expected in December.gap widened more than expected in December.

Wall Street fell last week on concerns about higher oil prices and the possibility inflation could lead to higher interest rates. This week, the markets will scrutinize a stream of economic data, and testimony Wednesday from Federal Reserve Chairman Ben Bernanke. (This come from
today's MSNBC News )
Also Nasdaq fails the takeover of the London Stock Exchange.

Wall Street fell last week on concerns about higher oil prices and the possibility inflation could lead to higher interest rates. This week, the markets will scrutinize a stream of economic data, and testimony Wednesday from Federal Reserve Chairman Ben Bernanke. (This come from
today's MSNBC News )
Also Nasdaq fails the takeover of the London Stock Exchange.

The February of 2007

Well just when gas and oil prices were getting good, the midwest and northeast are being plagued
with snow and 0 degree weather. Less money to invest unless you own an oil well, gas rights,
deal with futures or whatever.

Fidelity Money Market Funds

Fidelity Cash Reserves Funds 7-day yields as of 1/30/07 are 4.96%
Fidelity Money Market Fund 7-day yields as of 1/30/07 are 5.04%

Asset Allocation of Money Making Funds

In creating money making funds, it is of great importance to think long and hard how you will allocate your assets among various funds, such as stock funds and bond funds, domestic or
international, small cap, mid cap, or large cap, growth or income ad infinitum, how much risk
you are willing to live with.

My first post to Money Making Funds

This is my first post to Money Making Funds blog. I will be returning to post more later. Make money by investing in Money Making Funds.