Friday; January 28, 2005
THE MUTUAL FUND INDUSTRY.
When I scan the performance of the mutual fund industry as a whole I am appalled. It is a national disgrace and a rip off of the American people. WHEN WALL STREET TALKS ABOUT MONEY MANAGEMENT IT IS SCREWING EVERY INVESTOR IN THE UNITED STATES BECAUSE THERE IS NO MONEY MANAGEMENT AS THE 10 CHARTS BELOW CLEARLY SHOW! A bunch of dummies sit before a screen and think about how they are going to screw the customers even more (I remind you that I spent some 48 years on the street and, in fact, four of the companies listed here were clients of mine).
I use as my criterion for picking out the funds I am going to analyze, as some of you might know, the advertisers. They brag and I check. They ought to hide their heads in shame but Wall street has no shame and has never had any shame in my life time of working the street.
I advocate that an individual learn how to invest. If those morons can do it then why can't you?
Pension, retirement, late life money is thrown into the cess pool called Wall street and they are masters at losing it.
George Bush is out of his mind when he wants to release more money to Wall street.
If there is one thing you can be sure of it is this: what ever they get from suckers will go into their pockets and/or get lost in the markets!
In the following analyses I used the time frame of the past 12 months for performance evaluation because it has both an up cycle and a down cycle. I looked for ten (10) famous name mutual funds and once the major name was picked I then looked up either a growth fund or an aggressive investment fund. All of the funds are common stock funds.
As you will see each and every one of the funds is easily identified. Each and every fund is compared to the time performance of the DJI for the one year time period.
All the charts are exactly as I got them from MarketWatch and I certify to you that I have not touched them, altered them or modified them in any way at all. Each and every chart is fully comparable with one another. I have entered the names of the funds as well as identifying the DJI on each chart.
The charts below are arranged in alphabetical order using the name of the sponsoring organization. Alger is first, Waddell & Reed is last.
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Alger Fund Alger
Capital Appreciation Portfolio; Class A Shares. |
Nobody did great but Janus. They are regrouping from their dishonest days (I guess).
All these mutual funds give themselves wonderful names but the names are worthless.
When all is said and done they are absolutely pure market funds as proven by their performance; they emulate, copy, move with and fluctuate as does the market. It is more than fair to say that nine out of ten did no better and no worse than the market. Throw a dart and get the money management for free!
IT IS AMAZING: THEY ARE ALL ALIKE AND ITS DOESN'T MATTER A TINKERS DAMN WHO YOU HAVE AS A "MANAGER" OF YOUR FUNDS BECAUSE IN ONE YEAR THE DIFFERENCES ARE NEGLIGIBLE.
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Moral of the story: if you are going for a short term play in the stock market just pick out the cheapest in fees and charges and the odds are that you will get best play for your money. NOTORIETY IS NOT PERFORMANCE! |
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10 Famous Mutual Funds Performance Records: past 12 months |
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| FUND NAME | FUND PLUS/MINUS | DJI |
FUND VERSUS MKT. |
| Alger | MINUS 4% | MINUS 2% | MINUS 2% |
| Smith Barney | MINUS 2% | MINUS 2% | SAME |
| Diversified | MINUS 6% | MINUS 2% | MINUS 4% |
| Federated | MINUS 1/2% | MINUS 2% | PLUS 1.5 % |
| Janus | PLUS 8% | MINUS 2% | PLUS 10% |
| Merrill Lynch | MINUS 2% | MINUS 2% | SAME |
| Morgan Stanley | MINUS 1% | MINUS 2% | PLUS 1% |
| Oppenheimer | MINUS 2% | MINUS 2% | SAME |
| T. Rowe Price | ZERO | MINUS 2% | PLUS 2% |
| Waddell Read | PLUS 4% | MINUS 2% | PLUS 6% |
IN SHORT AND IN SUMMARY I AM UNDER WHELMED.
PLEASE NOTE THAT THEY RIDE THE CYCLE UP AND DOWN! IF THAT IS MONEY MANAGEMENT THEN MY NAME IS JOHN KERRY.
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