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Political Factoid
Mutual fund investing is
just like conventional
gambling.
- The "house" always gets
its cut.
- If you continue to stay
in the game, you will
undoubtedly lose.
- Invariably, fund managers
buy high and sell low on
a regular basis.*
- When the market climbs,
more people invest more
cash into the fund, forcing
the fund manager to buy
high.
- When the market dives,
many people invested in
the mutual fund pull their
money out, forcing the
fund manager to sell fund
assets at a low price.
- Those long term investers
in the fund are forced to
take the consequences of
that continual buying high
and selling low.
- Inflation helps give an
illusion to long-term gain
(and minimized loses).
| * |
Just the "opposite" of what makes
money for the investors.
|
cf.
FPR
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-30-
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