By now, everyone has heard all the doom and gloom surrounding the pension fund entitlement programs around the nation. Of course, GM and Ford are getting the most attention. This being said, we cannot ignore a fundamental shift taking place as companies try to replace their entitlement programs with 401k's.

On the surface, it seems cruel to take away something like a pension fund, but the changes are inevitable. In order to remain competitive in the global market place, pension funds must be replaced by 401k plans.

Since GM has been one of the worst performers for the year, I have got to believe that 2006-2007 will bring a turnaround for the company. I am not placing the stock in the IA portfolio, but for speculators/contrarians, this is an interesting bet.

GOOGLE:

On the opposite side, I have not seen this much hype in a stock since the internet craze of the late 1990's. As bad as I want to short this puppy, I think I'll wait and see if the stock can get in the high 400's. Once again, brokerage firms are falling over one another to recommend this stock. Once the bubble bursts, a person short at $475+ may be able to make a quick 25%.

THE FED:

Everyone is expecting at least 1 more rate hike to the 4.5% range. Since everyone is expecting this, my target has been raised to the 4.75-5.0% area before the Fed calls it quits.