The Dow: 1000 point drop in 15 minutes?

[I.J. Reilly]

I hope you know I am not trying to be argumentative here, although that is my nature. This is an area I have dealt in for over 28 years. Therefor, I have a lot of opinions and it is fun to talk about something I actually think I know something about. It really doesn't matter if anyone on here agrees with me, except I guess for my ego, because no one on here is a client.

That being said, I do know of several mutual funds the retail guy can get into that have outperformed the market over longer periods of time. That statement is not a solicitation. I am not looking for new clients. Unless you have over $100,000 and don't need the money for at least 5 years and you promise not to hassle me.

I'm more than willing to bow to your expertise in this area, and had I the money available, you'd be the first on my list of people to ring.

Just so you know, I was making a general statement and am more than willing to concede outliers. If the broad brush with which I paint is incorrect (i.e., large sized mutual funds available to retail clients generally do outperform the market after fees have been taken into consideration), then I am all ears.

I just hope that when the day comes when I have serious money to put into an investment fund, my potential broker knows about those same funds that you know about.

[byu71]

(i.e., large sized mutual funds available to retail clients generally do not outperform the market after fees have been taken into consideration), then I am all ears.

Just to be clear, I think you are correct in this statement (per how I changed it), not incorrect. Perhaps I now understand what you meant by rarely and as such I agree.

I have never been against someone who wants to put in the time and effort to study and do their own investing at a discount broker. I just hope those children who advertise for e trade didn't have a bunch of stop losses on their stocks today when the market was down 400 and got filled on the way down to down $1000.

[cowboy]

While we're talking mutual funds, I have a question. Why would I choose a MF over an ETF? It is my understanding that MFs rarely outperform the broader indexes, so an index ETF like DIA seems a pretty attractive option. There are ETFs for pretty much everything, and they have low fees, so I have wondered what the continued attraction of MFs is. Apologies in advance if this is just a stupid question with an obvious answer.

[byu71]

While we're talking mutual funds, I have a question. Why would I choose a MF over an ETF? It is my understanding that MFs rarely outperform the broader indexes, so an index ETF like DIA seems a pretty attractive option. There are ETFs for pretty much everything, and they have low fees, so I have wondered what the continued attraction of MFs is. Apologies in advance if this is just a stupid question with an obvious answer.

OK, we have established I like answering these questions. I don't have access to the Dow Jones numbers, so I am going to use the S&P 500 which of course you also can buy an ETF for.

I will use Growth Fund of America. I am not recommending it here, but it can be bought with not a lot of money, I think $1,000. Up front load 5.5%. I would think anyone who studies it enough could find a no load that has good numbers, but I don't buy no loads so I don't know any.

3 year S&P down 4.17% per year, GFA down 4.16% per year after fees

5 year S&P up 1.92% per year, GFA up 2.87%% per year after fees

The longer you go out the less that initial fee hurts the return. 5 year you are 5% ahead even after fees. I am also considering you pay no fee to get into the ETF.

Now, if you took a dart and threw it at a group of mutual funds to pick your fund, odds are the ETF will beat your fund.


Note: For kicks I did the 10 year, but it is through March 31st and I had to do my own math, so I am not guaranteeing these numbers. S&P down 1.1% per year. GFA up .51% per year.

[New Mexican Disaster]

While we're talking mutual funds, I have a question. Why would I choose a MF over an ETF? It is my understanding that MFs rarely outperform the broader indexes, so an index ETF like DIA seems a pretty attractive option. There are ETFs for pretty much everything, and they have low fees, so I have wondered what the continued attraction of MFs is. Apologies in advance if this is just a stupid question with an obvious answer.

I am with you.

[byu71]

I just took an ambien. I don't want to stay up all night watching CNBC and Bloomberg.

[PaloAltoCougar]

I just took an ambien. I don't want to stay up all night watching CNBC and Bloomberg.

Let us know how your evening went. I've heard exciting things happen when golfers taken an Ambien.

[byu71]

Let us know how your evening went. I've heard exciting things happen when golfers taken an Ambien.

LOL, I have heard they can do some "wonderful" things for folks. They don't affect me much and I am not that sure they help me get to sleep. I took one at around midnight and went to sleep around 2 P.M. I never got the OK on here to take a second one. That might have been fun.

[Jarid in Cedar]

LOL, I have heard they can do some "wonderful" things for folks. They don't affect me much and I am not that sure they help me get to sleep. I took one at around midnight and went to sleep around 2 P.M. I never got the OK on here to take a second one. That might have been fun.

I am sure landpoke does not ask if it is ok to drink another 1/5 of scotch...