(by Helen Russon)
U.S. fund mangers endure hard times with U.S. stocks stuck in a narrow trading range for months and now threatening to head lower, reducing a return. Underlining the challenge, the blue-chip Dow Jones industrial average is down more than 4 percent, and the technology-laced Nasdaq Composite Index is down 7 percent for the year after a decline of about 2 percent for both indices this week.
Moreover, taking into account that real estate prices may be close to their highs, there are few attractive alternatives to stocks. There are some other aggravating factors: uncertainty over Iraq, some soft economic data in June, rising interest rates and the presidential election in November. And there is always a fear that gains may be difficult to make up for some years to come. More deep-seated problems include rising indebtedness of the U.S. government and U.S. consumers. The view that the market won't break out of its current levels for the rest of the year is widespread. And it will stay so until the election, at least.