Flubadub

The 'Idiot's Market Neutral Fund' - Midyear Update

Funds come and go. They do well then they falter. If they overweight a sector haveing guessed correctly they prosper in the short run. If they are broadbased they move in lockstep with the S&P average. In the end the biggest benefit/detriment comes to those in the highest income brackets. Stocks held are not taxed until sold. They can be given to children who are not taxed until they sell the stock the taxable gain based on the time of transfer not the original purchase price. Of course dividends and interest are taxable at ones nominal tax rate so if you are in the 30% bracket there is a disincentive for purchasing taxable high div securities and gaining money market interest.