Lots of conflicting information for investors these days. Who knows what to believe?

Here is a brief summary of articles from the past month with a handful of quotes:

• Move to index funds because managed-fund performance is down.
• Invest in Bershire stocks.
• Seek safety in the biggest US stocks.
• Forgo stocks altogether and purchase index funds.
• Cash returns are at a peak; lock in rates now.
• The stock rally is about over; expect corporate profits (and P/E ratios) to drop in 2007.

Merrill Lynch & Co. released a report last month -- titled "Time to Index?" -- that explored this possibility. It pointed out that while more than 60% of stocks in the Standard & Poor's 500-stock index outperformed the index in 2001, that figure has declined to below 50%. This could lower the odds active managers will spot big stocks that can beat the benchmark because fewer are available.

"This is something you'll see much more of as we move forward," says Kari Pinkernell, an investment strategist with Merrill Lynch. "It becomes much more difficult for active portfolio managers to outperform as fewer stocks outperform."

Even if individual investors are buying more U.S. stocks right now, they may not benefit from the recent record performance. The fall in stock prices Friday was due largely to concern over the strength of the U.S. economy, and whether earnings would continue to hold up in the fourth quarter and the new year. In a sign of pessimism, investors seemed to be dismissing the possibility that slowing economic growth could prompt the Federal Reserve to cut interest rates -- which is typically positive for the stock markets.

One telltale sign that U.S. investors haven't yet decided to bet heavily on domestic stocks is the continuing growth in assets at global stock funds. Demand for foreign stocks coming from both institutional and individual U.S. investors continues to be strong, with the offerings of exchange-traded funds that track global and foreign indexes growing steadily.

For the first time since early 2004, banks are cutting rates on many CDs and other cash instruments. Yesterday, the Federal Reserve left short-term interest rates unchanged for the third time since August, when it stopped raising rates after 17 consecutive increases. And with signs that the economy is weakening, some investors and analysts are predicting the Fed might begin cutting interest rates next year.

With the outlook now tending toward flat or lower interest rates, consumers who have focused on short-term instruments may want to consider locking in still-favorable rates for longer terms.

Despite its high price, some analysts say Berkshire, which now owns some 50 businesses ranging from underwear maker Fruit of the Loom to auto insurer Geico, has room to climb. "It's a 75-cent dollar right now," says Justin Fuller, an analyst at Morningstar in Chicago, meaning it is about 25% undervalued. Mr. Fuller, who says he doesn't own any Berkshire stock, values the stock around $129,000 a share.

Berkshire, of Omaha, Neb., trades at a relatively inexpensive 1.6 times its "book value," or its assets minus its liabilities. By comparison, American International Group Inc., the insurance giant, trades at about two times book value, while Citigroup Inc. trades at about 2.2 times book. (Like Berkshire, those two companies have large securities portfolios and sell financial products.)