I'm throwing this out for comment from people who know alot about investing (or think they do). How important is the Morningstar rating to your calculations? If one of your mutual funds has a low rating -which I guess is 1 or 2 stars - do you sell or exchange - leaving taxes aside- based on the rating? Is there a rating service that's better or is it your opinion and/or your financial advisor/
Don't trade in or out of funds...all your money is made on a small subset of days where the market rises a lot. If you are not in the game on those days, you're done.
Dollar cost average into an index fund and stay in the market.
But if Morningstar is at 1-2 stars, there is probably a big issue at those funds. Unjustifiably high fees, management issues, etc. I wouldnt sell on the star rating, but the explanation would probably make me a seller.
Are they better investments?
Are they better investments?
You largely set it and forget it. For people who don't have time or the knowledge to keep up with the markets they are a good alternative.
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Are they better investments?
You largely set it and forget it. For people who don't have time or the knowledge to keep up with the markets they are a good alternative.
At least for broad based index funds/etfs, I think it's more than just lack of time/knowledge. I just fundamentally believe that Im unlikely to "beat the market" no matter how much time I put in or studying I do. I think there are people who can consistently beat the market -- some people are just really good at this. I dont believe that I am one of them. And if a bunch of brilliant hedge funders etc. are beating the market, it means someone is not beating the market -- it would likely be me. So Im happy to just take the market returns, paying a ridiculous .04% and .11% expense ratios on my domestic and foreign index funds, respectively.
It's not a no-brainer -- I wish there was a product that invested in 90% of the market but weeded out 10% of the worst looking companies. But it's a smart play beyond just laziness IMO.
He was always extremely bearish, but he made some good points in his own defense. I don't even see him listed on the members search.
Anyone know?
He was always extremely bearish, but he made some good points in his own defense. I don't even see him listed on the members search.
Anyone know?
He wasn't 'always' bearish. Just bearish in the run up to the recession and (IIRC) a couple years afterwards.