Half of the Truth is Still a LIE!

The stock market will recover – TRUE!

Your actively traded mutual fund will recover too – NOT SO TRUE!

Every day we are reminded to “stay the course” because the market will come back. I agree with that and I am completely at peace with my investments because of that reality.

However, 85% of actively traded funds typically under perform the market and there are a variety of reasons why your active fund will not rebound when the market does! Stop believing the lie and learn how markets work!

MOST MUTUAL FUNDS ARE NOT GOING TO REBOUND WITH THE MARKETS!

Actively traded funds have some serious problems. First, many were weighted heavily in the financial sector stocks because of the long history of stability in that sector. From the billions of dollars coming out of the markets it seems that active money managers do not practice what they preach, they pull your money out of the market locking in losses while telling you not to pull it from them! Also, there is heavy redemption volume that forces active managers to sell their positions at the current lows and lock in their losses. If you are in an actively traded fund you have every reason to be concerned.

There is a better way! Market returns are very acceptable and achievable. There is peace of mind that begins when you accept a basic philosophy for investing that is grounded in the confidence that the Free Markets work!

This entry was posted in Free Markets and tagged . Bookmark the permalink.

Leave a Reply