| |
| |
|
Stocks & Mutual Funds |
|
|
|
Articles and Information about Stocks and Mutual FundsNetFinancial | Institutions | LoansColleges and Universities | Search Engines Hedge Fund Advertising
Have you seen all those big full page ads for hedge funds in the Wall Street Journal, the Financial Times, Investors Business Daily? Youhaven't. Maybe they are being drowned out by the regular mutual funds who continually tell you how great they are. Shucks! I forgot. Hedge funds are not allowed to advertise. I wonder why. Maybe they thinkthat their potential customers are too dumb toknow that hedge funds are a poor investment. Could be. The Securities and Exchange Commissionis trying to protect investors - I think? To be able to buy into a hedge fund thesmallest investor must have a net worth of$1,000,000 and an income of more than $200,000per year. Maybe the SEC doesn't think thesefolks are bright enough to know a good thingwhen they see it. There are other groups that are major investors with the hedge funds. Literally billionsof dollars are invested by university endowments,charitable trusts, state and corporate pensionplans. Could it be that they have a betterreturn than regular mutual funds? Naw! The mediawould tell you wouldn't they? The media is there to report the facts. It is hard to believe that just because a largeportion of their income is from advertisingrevenues of mutual funds that they would be laxabout this. If you were a fund manager and your fund was under performing and it was reported in thelocal paper, TV, or radio would you pay them tocarry your advertising? You sure would not wantto be compared with performance of a hedge fund. What is it that makes the difference of astandard mutual fund with a hedge fund? Why doesthe smart money gravitate to them? One word.Performance. A regular hedge fund manager ispaid on HOW MUCH money he has in his fund andnot on how much he makes for the investor. Thehedge fund manager is paid a percentage of thePROFITS he makes for the investors. No profitmeans no bonus so he better do the job or hewill be out of a job. Smart money moves. Itmoves to where the profit is being made. The SEC will not allow standard mutual fundmanagers to be compensated in this manner. Theirclaim is that it will be too dangerous for thesmall investor. Hog wash! If a fund is losingmoney the little guy should be selling hiscurrent funds like the smart money and finding abetter performing fund. None of the mediarecommend this to the little guy. My guess is there are enough intelligent fund managers who would like to be paid forperformance and would set up no-load funds toattract investors. The SEC seems to think moreof the funds than they do of the smallerinvestors. It is a shame you can't check the advertisingclaims of standard mutual funds against thereturns of hedge funds. Copyright 2005 Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know. Copyright 2005
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Buy and Hold Investment Strategy "Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out of every 5 years. Race Horses and Mutual Funds For years investors have been taught to lookinto the composition of a mutual funds. In otherwords the "experts" want you to take the time toanalyze the stocks within the mutual fundportfolio, categorize them by industry group andtry to understand the objective of the fundmanager. Keep Your Profits It looks like we have now entered a new bull phase in the stock market and I have a question for you. Will you give back the profits that you make this time as you did in 2000? You sure don't want to, but you are not going to get any help from your broker. Being Wrong Buying Stock is Okay Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market. Starbucks Stock is Up Starbucks earnings are up again and so is their stock slightly. It appears they are exporting America's weakness to caffeine and sugar around the world. How To Pick A Mutual Fund Mutual funds by definition are a mixed bag of stocks, bonds and a little cash. Their price per share is the NAV, Net Asset Value of the total amount of money in the mutual fund divided by the number of shares. The Cub; II We keep hearing about this bear market and that the bottom is "in" or "very close" so we should be invested in these bargain basement prices to take advantage of the next bull so we won't lose out on the expected huge profits.This is not a big bear market - yet. Emotional Maturity If you are going to be a winner in the stock market you must have emotional maturity. I did not say you had to be smart or know how to pick stocks and mutual funds. The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets A Guide to Using Stop Loss Orders Stop losses are market orders designed to allow you to limit your losses.When you place a stop loss you are instructing the spread betting company or stock broker to cut your position when it reaches a certain loss level (or in some cases, profit level - more later). VooDoo Training For the Stock Market If you go to Haiti or other places in the Caribbean you may run into the Voodoo tradition of magic. There are long and mostly noisy rituals with the medicine man spouting words that bring great power and conjure up whatever it is the supplicant desires. The I Word is Coming to a Town Near You Hello Inflation, it has been awhile, I see you on your way back again. Inflation? What inflation? Oh things like; Energy, diesel fuel, Aviation Fuel, Gasoline, Natural Gas, Milk, Wheat, Corn, Beef, Poultry, Hogs, Soy Beans, Building materials, paper, housing, Auto Prices, Health Care, Insurance, etc. Buy and Hold Investment Philosophy Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it. Trade Stocks for Real I read a comment by a forum member on another site earlier today that suggested that every investor should back test their system for at least twenty years. I disagree and will now tell you why. When? When will the stock market stop going down and start up again? If we knew that we'd all be jillionaires. So what do you do now while stocks are going down and stealing away your money every day?What does history tell us? Here is one very interesting fact. This Market Is Different All of the talking heads have been telling us that this market is different. You are going to have to be patient and soon (hopefully in your lifetime) the DOW and the Nasdaq will be back at their old highs. Why Investors Use Financial Planners Do you have a financial planner? Does one ofyour friends have a financial planner? Maybe youtake your advice from your broker. As I havesaid countless times before a broker will makeyou broker. Dividends When is a dividend not a dividend?The latest thing "conservative" brokers are preaching these days is to buy stocks that pay dividends. Everyone likes dividends. Selling The stock market has been going up for more than 7 months and many investors who held on through the big crash of 2000 are seeing their portfolios get back some of what had disappeared. Is now the time to sell those equities that are 'even' with what you paid for them? No. Why Stock Is More Risky Than Options! You probably have been told that options are risky. Even worse, that you can lose your shirt trading them!Well, what is the truth?Let's take a look at stock ownership. Mid-Cap Stocks: Asset Class with an Identity Crisis Much like the middle child, mid-cap stocks have long struggled to find their identity. Carved out from the upper echelons of the small caps and the lower end of the large caps, the mid-cap sector has a rough definition of stock with a market capitalization of greater than $2 billion, but less than $10 billion.
|
|
Currency Trading | Investing | Leadership | Negoatiation | Real Estate | Stocks and Mutual Funds | Taxes home | NetFinancial | Institutions | Loans | Colleges and Universities | site map Search Engines | EZmatic | 0pops | GetSonic | TrafficFish | Health |
| © 2006 |
