回复：Help!!! Major 401K setback: HWMIX

I think two things that contributed to the drop of the price of HWMIX. One is that the fund distributed some capital gains and dividend, another is the loss of value. It seems that it lost quite a bit of value because the distribution can not be that big (33%).

This fund normally invests at least 80% of assets plus borrowings for investment purposes in common stocks of mid capitalization U.S. companies. Last year, mid cap value funds are not performing well.

According to your asset allocation, I think you are too overweight on mid cap value and international funds. You should diversify more. International funds did well in 2007, but that type of performance just can not resume long. We might see some weakness this year in foreign and emerging market(people may take profits when the new year starts, some strong area last year may see some selling pressure at the beginning of the year).

I believe that diversification is the only way for 401k to perform well in a long run. Market timing may work in short term, but nobody can predict the market right all the time.

If there are other choices to diversify well in 401k, I prefer not to choose retirement target funds, but if there is no better allocation to diversify, retirement target funds are good choices.

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• Thanks! Yes, I'll do something to the international fund. -xux- ♀ (211 bytes) () 01/02/2008 postreply 09:24:30