sunny129

Barron's: Big Money Fibbers

I agree and every one should accept that figures with truck load of salt!

1. Historically 85-90% of managed funds FAIL to beat stock indexes.
2. "beating S&P' claim could be that their fund down just 39% compared to S&P's 40%!
3. Diversification in itself, especially in over valued (perceived or real) assets will not shield from Mkt drop!
4. The 'only ones' may be the ones who used PUTS and or inverse Bear ETFs/Mfunds in a 'timely' fashion, which is subjective and elusive. I was up by 7% in July but slightly under 2% from peak in Oct '07 by using above strategy. I am down b/c Free Mkt has been repeatedly violated by Central Banks/Govts!

5. Hardly any of the MFunds use these tools to protect the erosion of investors' portfolio, very sad indeed.



On Nov 02 09:35 AM Ted H wrote:

> Paul - Why do you think there's a "zero chance" fundmanagers in the
> Barrons article were beating the market? It's not hard to do. The
> "market" is commonly defined as individual indexes such as the S&P
> 500 index - which is way too narrow a definition. The fundmanagers
> can beat the index simply by deeply (not excessively) diversifying
> their allocations. Diversification enables them to (misleadingly)
> out-perform the "market". My experience in the portfolios I manage
> is that diversification outperforms the market indexes by about 25%