Morning Commentary
The market is poised to lift off. Right now, all it needs is a boost. It's been an eventful year, but the markets are still in the starters’ block. However, we enter this week with all the signals pointing to a higher market. The Dow has made a series of lower highs and it has regained upside momentum. The volatility (VIX) fear index has plunged to its lowest level of the year, down a full 34%.
The Dow Jones Industrial Performance
The Market Volatility Index Performance
Perhaps, there's an odd indifference and confusion as the neutral reading among individual investors reached record levels last week.
There's no doubt the market is on edge and would-be buyers from the pros to the novices need to be sold before buying...but what exactly do they need to hear?
Not So Smart
It sounds great… the smartest guys in the room are creating mutual funds for Main Street to enjoy their investing prowess. The problem is they have underperformed mightily. One of the big reasons why they underperform their peers is high fees contribute to their underperformance. In fact, mutual funds in general have had a tough go of it.
Beating Peers |
1 Year |
10 Years |
Ave Fees |
GS |
28 |
12 |
1.2% |
MS |
27 |
38 |
1.24% |
WFC |
33 |
25 |
1.17% |
JPM |
49 |
31 |
0.98 |
Vanguard |
53 |
46 |
0.17 |
Nonetheless, Main Street keeps giving Wall Street its money hoping to set it and forget it, waking up one day to a fortune. While they wait, Wall Street gets richer. Last year alone, Goldman Sachs brought in $73 billion in new mutual funds business.
Moreover, I implore regular people to invest in the stock market; but to do it right, you have to put in a little elbow grease or find someone more accountable
Today’s Session
Today will be light of domestic economic data which should help the rally continue.
Comments |
I sold my last mutual fund in 1988. Why pay high fees, sometimes at both ends, and capital gains taxes on unrealized income? I've been fully invested in stocks since 1988. I was forced to buy mutual funds when I started 529 plans for my grandchildren. What's wrong with a self-directed 529? Arthur Carlson on 4/13/2015 10:11:45 AM |
Own no Mutual funds Joe Vollmer on 4/13/2015 10:21:40 AM |
How much should be/should not be invested in mutual funds? Richard Bucher on 4/13/2015 10:39:41 AM |
I know the suits want it to sound complicated while they scrape off the fees. I feel it's mostly common sense. To those 50% who never buy stocks I say this, if you want to win the lottery you have to buy a ticket! Joe Pryor on 4/13/2015 10:41:24 AM |
I'm not interested in funding fund manager's retirement! Marilyn Sconzo on 4/13/2015 11:34:08 AM |
A S&P 500 index trust mutual fund, available no load, Vanguard, T Rowe Price and others, is a low cost, low fee, tax efficient means to participate in the broad market. I have owned mutual funds since 1969, used them to save for 2 children's education and recommended them to friends. I continue to believe in them. Chris Reinhardt on 4/13/2015 1:14:03 PM |
Its a shell game. The American public is dumbed down and forget. Who bailed out the banks that stole the homes of millions of people (ILLEGALLY!!!) not yet 10 years ago. Doyour own research and do not put your money in someone else's hand. Hillary the next president? We have already forgotten The Bullets she claimed to have taken in Bosnia thus throwing our military under the Proverbial Bus. It must be in the water. Will we ever wake up? Donniel Aponte on 4/13/2015 2:12:27 PM |
I switched my mutual fund investments to Vanguard several months ago. They have performed well for me - all Morningstar "GOLD" rated. I additionally invest in a variety of stocks. I believe everyone should be involved with both opportunities. M. Toye on 4/13/2015 3:41:02 PM |
all target date funds with Vanguard Ed on 4/13/2015 3:54:06 PM |
Call me too conservative, but I only INVEST IN HIGH YIELD G.O. MUNIS IN STATES THAT ARE IN THE BLACK, AND PREFFEREDS OF COMPANIES THAT HAVE A FORTUNE 500 TRACK RATING, cannot go wrong for the last 20 yrs. good night Joe Caymim on 4/14/2015 11:56:27 PM |
I have been in Vanguard Funds for 16 yrs.I follow a newsletter(adviseronline,Dan Wiener)I follow his growth portfolio,all Vanguard Funds and I couldnt be happier. Kevin K on 4/15/2015 6:14:33 PM |
Charles says it all: "I implore regular people to invest in the stock market; but to do it right, you have to put in a little elbow grease or find someone more accountable." So, forget fear, grow a pair, and make some money! Kevin Dawson on 4/16/2015 5:04:06 PM |
Better than a savings account but seems the gains disappear at tax time. Carol on 4/18/2015 11:27:58 AM |
Tweet |
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3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
3/12/2024 9:25 AM | ROTATION IN FULL SWING |
3/11/2024 1:41 PM | Sharpening Pencils |
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