MUTUAL FUND PERFORMANCE AND WHY THERE ARE NO DICE COUNTERS IN VEGAS!
A way that investors get ripped off and in a sense rip themselves off is based on the culture of performance in the mutual fund industry. If you stop and think about it there is absolutely no reason that the past has to equal the future. If you have not been particularly successful as a stock investor in the past, for instance, there is no reason that you won't be unsuccessful in the future. One reason I hope that you are reading this article is that you want to improve as an investor. Let's discuss how professional gamblers profit in Las Vegas.
Card counters are a type of professional gambler that uses their memory of what card cards have been dealt out of a deck in a game of blackjack (also called 21). Since there are only a certain number of each type of card they can increase their bets when it is more likely that they will win then lose. This works because after the shuffle the deck starts with a certain composition and a number of games are played until the next shuffle. Toward the end of the deck you can know what may be coming out if you are paying attention because each hand in the deck is depends on what has been dealt before.There are no professional gamblers who count the numbers rolled on a pair of dice on the craps tables. This is because there are only two dice and each roll is different.
In other words, each roll of the dice is independent of any other roll. Since each roll is different it doesn't matter what was rolled in the past. The same thing would happen if the deck in a game of blackjack were shuffled each time between hands. This is a lot like the stock market where we don't know what the general level will be from time to time because of random information entering the market in the sort term. Mutual fund managers try to outsmart the market in the short term instead of patiently waiting in the long term where it is more likely to correctly determine if stocks are high or low.So why then does the public pay so much attention to the nonsensical advertising of mutual funds that brag about prior performance in past years? Mutual funds buy expensive ads in newspapers, magazines, and on television where they tout their performance over the past one, three, five, and ten years.
The mutual fund industry irresponsibly promotes this "culture of performance," even though it knows perfectly well that it misleads investors. Studies have shown that if you take the top 10% highest yielding funds in any year, four out of five of them will not be in the top 10% a year later! For this reason I strongly recommend that if you can only buy mutual funds, as in the case of the 401(k), then restrict your purchases to indexed funds like the Vanguard 500 (VFINX)..
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown?s site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.comCreate Confidence With Your Writing
Whether you are writing a magazine article, composing a press release, or editing the sales copy on your website, the end goal is always the same - to influence the thinking, and probably actions, of other human beings. To do that, your writing must instill confidence in a mind that is inclined to doubt you.Here are a few tips on keeping the reader on your side.Keep your word count under control. Keep it simple and don't say any more than necessary; when you write, limit your word count from the start. Never spend 1000 words covering ground that could have been covered in 200 words - the extra material looks exactly like the useless filler it is.Don't hedge. At all.
Sometimes a writer is worried about offending the reader, and so either avoids making direct statements or pads the statements with language designed to soften the blow. Don't hedge - be bold and direct, and let the reader be offended. You can't make everyone happy, and you'll look like a fool if you try.Be on the...
Create Confidence With Your Writing
Hedge funds > Create Confidence With Your Writing
Offshore Investing
Offshore investing: spreading risk helps sleepThe world's economies still dance to different tunes and have different boom and bust cycles that tend to offset each other, even though the differences are getting smaller. As a result, international stocks can provide diversification for a portfolio heavy in U.S. stocks.Between June 1997 and October 1998, for example, Japan's Nikkei index lost almost 40%, but European markets did well due to continental economic union. U.S.-style corporate restructurings also began to pay off. One region's success balanced the other's failure to get its financial house in order.There has been less divergence between regions more recently.
Even so, we suggest the prudent investor cannot afford to ignore overseas markets. They now represent some 44% of world market capitalization, up from 25% about 30 years ago. International stocks can provide solid diversification for a portfolio heavily invested in U.S. equities.Exchange rates add an extra flavor...
Offshore Investing
Hedge funds > Offshore Investing
Community Development Venture Capital Pays Off
(ContentDesk) October 22, 2005 -- CDVCA (www.cdvca.org), the network for the rapidly-growing community development venture capital (CDVC) industry, is pleased to announce several recent successes in its field. Three prominent CDVC funds, Coastal Ventures II, Pacific Community Ventures, and SJF Ventures, have realized significant financial returns through the sale of privately-held companies. CDVC funds provide equity capital to businesses in underinvested markets, seeking market-rate financial returns, as well as the creation of good jobs, wealth, and entrepreneurial capacity. "We are thrilled about these early successes in our industry," said CDVCA President Kerwin Tesdell. "These premium exits confirm what many CDVC investors have been saying for years: mission-driven venture capital investments can create important social impacts, while providing a handsome financial return." Coastal Ventures II, LLC, a fund...
Community Development Venture Capital Pays Off
Hedge funds > Community Development Venture Capital Pays Off
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
(ContentDesk) November 26, 2004 -- A celebrated group of New York's foremost Pastry Chefs will kick off the 2004 holiday season with GINGERBREAD HOMES FOR ANIMALS, an exhibition and fair at Central Park's Dana Discovery Center, to benefit New York's at-risk animal population. The event, set from Wednesday, December 1st through Sunday, December 5th, will feature each pastry maker's creation of a unique gingerbread house, inspired by an animal he or she loves. The one-of-a-kind edible sculptures will be sold by raffle. Admission to the exhibition and fair is free.GINGERGBREAD HOMES FOR ANIMALS is presented by Rational Animal and hosted by a list of prestigious city gourmets and animal-related organizations. Held during the holiday season, its goal is to illuminate the plight of the city's most needy four-legged inhabitants and raise awareness and funds for them.
In addition to the edible sculpture exhibit, the fair will feature a list of daily activities including animal-related...
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
Hedge funds > Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
Need to Change Something?
"Need to change something?" you ask. "Isn't it enough that everything around me is changing so fast I can't keep up?"I see and hear it all the time. People starting to say something, then stopping, shaking their head and saying, "It isn't like it used to be." You may agree with Michael Fry and T. Lewis who said, in "Over the Hedge, " "the more things change, the more they remain ? insane."A common reaction to this is to knuckle down and try and keep as much the same as you can, while at the same time, lamenting the changes going on around you. It leaves us, I'm afraid, beating out heads against a brick wall.
We become rigid in reaction to all the change going around. More determined than ever to fight it. But isn't there a better way? If change has become the norm, wouldn't it be wise to become change proficient? Isn't it better to light a candle than to curse the darkness?To become change-proficient, first of all you have to want to. This may be the hardest part of all. It means...
Need to Change Something?
Hedge funds > Need to Change Something?
Fundamentals of Headlines, Copy and Design in Communication
While there are many opinions about what constitutes good headlines, copy and design, most professionals agree that these individual elements of the ad must work together. In combination, they must grab attention, convey a persuasive message and portray a consistent identity.An ad that's too cluttered can't convey a message quickly enough to engage the reader or viewer. One that's out of character with the product or service will be confusing rather than convincing.An effective headline (or a broadcast ad's opening moments) must immediately capture the audience's interest and pull them into the ad. A good rule of thumb is to look for the inherent "drama" in what you are offering, and capitalize on that to create an alluring ad.Examples: "We're Losing Our Minds" -- a university ad appealing for funds. And "You Don't Have to be Jewish to Love Levy's" -- a bread company ad featuring a Chinese man biting into a whopping pastrami sandwich.Next, the photo or illustration amplifies the message....
Fundamentals of Headlines, Copy and Design in Communication
Hedge funds > Fundamentals of Headlines, Copy and Design in Communication
Jaguar XK: Car Of The Year, Best Coupe Awardee
Another set of honors goes to the Jaguar brand. During the 2006 Auto Express New Car Honors, the ?Car of the Year' award was granted to the Jaguar sports car XK. Another award was given to the Jaguar brand as per the ?Best Coupe' award was presented to the coupe version of the Jaguar XK.
The Jaguar XK also is known by other names such as the XK8, XKR, and the XK. It is manufactured by the Ford Motor Company and is marketed under the Jaguar brand.
It has been in production...
Jaguar XK: Car Of The Year, Best Coupe Awardee
Hedge funds > Jaguar XK: Car Of The Year, Best Coupe Awardee
Elements Home Spa Releases 2005 Spring and Summer Catalog with New Products
Elements Home Spa, Inc. today announced the release of its 2005 Spring and Summer Catalog. This year's spring and summer catalog features exciting new premium facial products added to their existing line of home spa treatments and luxurious bath and body products.New products for spring and summer 2005 include:?Vitamin C Facial Cleanser ? A gentle, non-abrasive cleanser rich in antioxidants?Aloe and Chamomile Facial Toner ? An all-natural, alcohol-free toner that adds balance to facial skin?Detox...
candles
Hedge funds > Elements Home Spa Releases 2005 Spring and Summer Catalog with New Products
loans Hedge funds MUTUAL FUND PERFORMANCE AND WHY THERE ARE NO DICE COUNTERS IN VEGAS!