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Originally Posted by boldruler
The markets are all about perceived value, that is why so many companies have high stock prices but aren't even close to profitable. They made Enron look a lot better than it was on paper, inflated the price, and dumped it. You probably already know this but the securities business has the rating agencies like Moodys and S&P that keep it as pretty honest. The hedge funds are the ones right now that are pretty sketchy because nobody really watches over them.
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They're watching the variable AND fixed annuities as well as the hedge funds right now. We've done a few IPO's that are now being watched as well as a few hedge funds (Citigroup did an alternative hedge that isn't doing SQUAT right now.) Basically, people with more money at a younger age are going to go with a more aggressive fund or stock versus an S&P or Moody's AAA rated bond. That was the case with Enron. It's a huge gamble.