This post is not designed to be a complete answer to the question “should I buy mutual funds”, but let me just point out two items that came across my desk today.
- Howard Ruff wrote a brief article title “Two Cheers for Dave Ramsey”. Howard pats Dave on the back for his work in educating people to get out of debt, but what he cautions Dave on is the recommendation to put money into mutual funds once you are out of debt. The problem, Howard points out, is that making money in a mutual fund sometimes takes a LONG time. In fact, there are as many as 20 consecutive years when you would either not make money or make very little money investing in standard mutual funds of common stocks. The fees involved in most mutual funds is another story. So is “buying a dividend” which is applicable unless the fund is in an IRA or other tax deferred vehicle.
- Morningstar, long known for its reviews and performance results of mutual funds, released data indicating that the average mutual fund manager doesn’t even invest his own money in his own fund! Ok, maybe he just doesn’t want to pay his funds fees and there is no legal way around it. But come on, that’s like a cook not eating his own cooking! Can you say “no faith in the results”?
Mutual funds have a place, but less and less so in today’s world of ETF’s.
Part of Howard Ruff’s argument is that you need to be out of the general stock market and only in select groups poised to do well in the current and future investment environment.
What does Howard like? Try energy, including Uranium shares, and other oil production services. The kind you will read about and get specific recommendations for in Casey Energy Speculator.
He also feels the time is right for gold and silver, ie precious metals shares, the kind you will read about and get specific recommendations in Casey International Speculator.
Both publications offer a Risk Free Trial Offer.
