Most Actively-Managed Mutual Funds Fail To Beat The Market
Most investors attempt to beat the market at some point in their investing career. Some investors delve into picking individual stocks and others try market timing, but the most common way new investors try to beat the market is buying actively-managed mutual funds. Many people think by looking at a fund manager’s past record or [...]
3 Biggest Fallacies About Index Investing
Over the past ten years or so, many investors have been convinced that index funds are the way to go because they outperform 95% of all managed funds. I see three major problems here:
#1 – What does “outperform” mean? Down “only” 25% vs. a 30% drop in an actively managed fund in a bad year?
#2 [...]
How To Invest Money For Long Term Profits
Knowing how to invest money is not something you just automatically know how to do. It usually comes with practice, a lot of research, and probably a significant amount of loses along the way. That’s unfortunate because being a long term investor is really the best way to become wealthy, and often new investors quickly [...]
What Are Management Fees?
Management fees, as the name implies, are fees that a fund management company charges for “managing” your money. As a rule of thumb, fees are higher if your money is managed “actively” which is the case with almost all mutual funds. Such a fund management company presumably puts more effort behind managing your money than [...]
Buy A Good Stock And Put It Away – Not
During market downturns you might call your broker and ask him,“What is happening to my account? It is losing so much money.”
The standard Wall Street answer is, “Don’t worry, the market always comes back.”
It looks like we are in the beginning of a major bear market andno one knows how far down it will go [...]