Saturday, August 12, 2006

Sarbanes-Oxley skews investors' expectations


Question: I have most of my retirement money invested in mutual funds from various 401(k) rollovers. I started a Roth IRA and have money invested in various accounts.

I consider myself an informed investor but not knowledgeable in the factors that affect the market. My total investment in my Roth IRA has gone up 35 percent in the past 21/2 years, so I have picked good stocks or just been lucky.

I have a small stake in Google, and some things that happen in the market have me very confused. I know the tech sector has been down, but I don't understand why when Google beats analyst revenue estimates handily, the stock went down. It still seems to be fluctuating lower than I expected. I would expect that when a stock exceeds expectations, it would go up.

See full Article.