When you invest in a mutual fund you have safety in knowing the investment objective of the fund manager. You know the fund manager can be brought up on malfeasance if he invests your funds outside of the investment objective outlined in the prospectus.
An Equity Income Fund would concentrate their assets on preferred stock, and common stock paying a nice dividend. However, T. Rowe Equity Income Fund has seen it's value diminish 90% since the dividend was cut. You would think these Wall Street machers would have sold this no dividend stock when the announcement of dividends being suspended took place. But noooooooo, T. Rowe Price held long, and proceeded to lose on paper a little less than $300,000,000 for the little guy. And this was just in the Equity Income Portfolio. It's other assets in other funds lost even more.
So what are these yokels waiting for? Bankruptcy?
So much for stop loss orders. So much for timing. So much for Eliot Wave theory. So much for fundamentals.
You get the feeling these positions were in place for insurance against bad press and free infomercial puff pieces in the Slimes.
Shame on T. Rowe Price and their violation of the investors trust.
PRICE (T.ROWE) EQUITY INCOME FUND 6,889,200 shares Dec 30, 2011