Thursday, November 30, 2006

Is Bigger Better?

T. Rowe Price, one of the world's largest management firms, claimed that in 2007, economic growth is likely to slow down, but not stall. This year, the job market has improved and if it continues to do so in 2007, U.S. consumers would be more likely to be able to keep spending. The values for the largest 100 stocks are at their lowest levels since 1983 and T. Rowe Price thinks that now is a good time to buy some of most well-known companies. Larry Puglia, manager of the T. Rowe Price Blue Chip fund, said that investors should put more money into big-cap stocks, particularly those in areas like technological, financial services, and biotech. Buying up these stocks now might be good, but is that just for now? Is bigger better?

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