87% of all funds return less than S&P??????

Quote from Longhorns:

Most people outside of the industry have no idea what an index fund is. Unfortunately, even the ones who do know are locked into company 401k plans that have specific mutual fund choices to pick from (no index funds).

It's all a big scam by the Wall St. titans to keep milking free money from the American sheeple.
More...

Ya got that right. Tried to get my daughters account in cash. No such thing. "We have products similiar to cash" I asked them if she would be able to buy a car with something similiar to cash. Obviously not. Their products "similiar" to cash return less than the worst cd rate.
 
Quote from kapama:



C'ommmon what am I missing here?
More...

What your missing is two extra words!

"Over and Time"

Yes the index funds are the best ruote to go OVER TIME but what you fail to realize is that the in the short run there are alot of funds that can have HUGE returns and that's the reason you buy a Hedge Fund.
 
Which hedge fund to get in? 87% of them will return less than S&P and how would I find the 13%? even though I find it, now IO have to pay expenses on it.

Simple truth is we live with sheep herds. Unbelievable.
 
Which hedge fund to get in? 87% of them will return less than S&P and how would I find the 13%? Even though I find it, now I have to pay expenses on it.

Simple truth is we live with sheep herds. Unbelievable.
 
One of the first things I noticed when I became interested in investing is how completely irrational markets are. The example of underperforming funds is one piece of evidence. While the relative underperformance of those funds compared to the index is small, on an absolute return basis over the course of 30 years it's huge. And these are the lackluster returns of an index we're talking about here.

The opportunities the market provides for an independant thinker are truely amazing.
 
Quote from kapama:

Which hedge fund to get in? 87% of them will return less than S&P and how would I find the 13%? even though I find it, now IO have to pay expenses on it.

Simple truth is we live with sheep herds. Unbelievable.
More...

I am wondering the same. I've heard the story that only 10% or so of mutual funds beat the market.... okay now which ones are they? That's what I really care about: a list of the best performing funds over a long history (10 years minimum preferably 20)
 
Quote from kapama:

...Forget the return, investors to these funds, why are they paying all those expense ratios and front load charges and back end charges? Just to receive returns less than S&P??? I can understand some funds returning less than the index but 87% of all funds???
More...
I suppose that if someone wanted to get a low-cost S&P500 buy-and-hold return, for every $75,000 or so, he could buy one front month ES contract and invest the surplus funds in T-Bills. The only cost would be the ~$5 commission on the front month contract roll every 3 months. Am I missing anything important here?
 
Kapama:

What kind of "funds" are you/the WSJ referring to?

What were the parameters of the WSJ study?

Why do you trust it?

What are the benchmarks of the funds they studied?

What time period did they use in their study?

Which “S&P index fund” are you talking about?
 
Quote from Thunderdog:

... for every $75,000 or so, he could buy one front month ES contract and invest the surplus funds in T-Bills. The only cost would be the ~$5 commission on the front month contract roll every 3 months. Am I missing anything important here?
More...

And that is exactly what I am doing with my fake fund. There is one little thing missed, the timepremium lost on the contracts, which is about 48 points per year, but that is made up by the T-bills or CDs.

Now if the manager is able to sidestep a few times and be in cash while the market is falling, then the fund easily beats the market.

So if you and I can figure this out, how come that a few thousands managers can't do it??
 
You must log in or register to reply here.
Back
Top