Ignoring Ralph Waldo Emerson’s warning that “A foolish consistency is the Hobgoblin of little minds…” 401(k) plan sponsors continued to make the decision to remain with their current record keeper at alarmingly high rates as measured by the July 2007 401kExchange Opportunity Index¹.  All markets are at historically low levels with the Mid Market ($10-$100 million) at its nadir at 4.43%; both the Micro (<$1 million) and Small ($1-$10 million) Markets were below 5%.  If the stock market continues its precipitous decline, providers with anemic sales growth will be especially hurt, resulting in a new wave of consolidation.

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Mid-Cap Stocks:  An Option for a Well-Diversified Portfolio
 

Most investors today know the value and role of large-cap and small-cap stocks in a portfolio allocation.  Large-cap stocks provide greater return stability and lower volatility than their small-cap counterparts.  Small-cap stocks, on the other hand, have the potential to provide larger returns, but with higher risk and more volatility.  Given these two extremes of the equity risk/return frontier, mid-cap stocks may be an alternative to consider for a well-diversified portfolio.

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From Last Week's Exchange

Mid-Market Mid-Year 2007 Ratings
 

BASED ON ALMOST 2,000 surveys with Mid-Market ($10-$100 million) plan sponsors in 2007, 401kExchange has released its Mid-Year Ratings and Market Share report available on our website www.401kExchange.com.  As with the 2006 full year Report, providers are rated based on the percentage of clients that gave them a 4 (very satisfied) or 5 (excellent).  Ratings are based on random samplings of clients from 5500 filings - providers are not allowed to submit samples.

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Prospect Pipeline APPOINTMENTS
Over $70 Million in 401(k) Set Appointments Available!

Appointments currently available for sale with Plan Sponsors that want to meet face-to-face on a specific date and time!  For lead details, contact your Account Executive or call 877-777-401k ext. 3573 to speak with Mary Christopher (mchristopher@401kExchange.com).