You don't see much advertising for stock mutual funds lately. Magazines that once burst with boastful performance metrics from stock mutual funds now find that the funds, and stocks as an asset class, have little to promote.
The lesson is that a fund's long-term performance, on which many investors weigh heavily when making allocation decisions, bears no impact on how a market actually performs. What matters is how an asset acts in today's market.
That is why I always look at the stocks underlying those mutual funds. In today's sideways crawling Wall Street environment quality dividend-paying stocks supplemented with investment grade and some high yield bonds will provide superior performance.
But at the same time, those funds with consistent performance, over up-years and down-years, is attributable quality investment company management. Those funds are always worth a look especially if they are suitable for your time horizon and risk tolerance.
No comments:
Post a Comment