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2011年1月28日 星期五

Why you shouldn't chase investment trends

On my weekly radio show, asked the audience "I heard that the dollar will go down in price, so there are falling dollar fund?" someone asked "inflation is forecast to grow — there is inflation?" answer: you don't need to buy these things. The Marketing Department of the investment firm may establish a Fund tries to profit from the trend at the moment, but that doesn't mean that investors need to take the bait. It may seem cool to buy dollar fund. However, the Fund will not be so great when the dollar goes up.

Instead of trying to be an amateur, stick to the best managers of mutual funds, which have demonstrated that they can choose the securities that will benefit the most everything that happens in the future. These fund managers must have the discipline and methodology to find stocks that will go up when the dollar falls. Management also enables you to determine which companies will benefit when the dollar rises.

[See why mutual funds are the best investment]

In fact the best managers will likely have already invested in stocks that would benefit from some tendency for many months before. Managers and their team of analysts armed with proprietary research from around the world, as well as access to top company executives to help them to predict what will happen in the future. The best managers also have access to trained economists who understand the market better than most people. In turn fund managers investing can stay ahead of the crowd and the purchase of this stock at attractive prices. By the time most investors are aware that the dollar falls, stocks that would benefit already grown up.

Chasing, investing trends reminds me of those infomercials that tout medical remedy for every type of ailment imaginable. If your muscles or joints pain, there is a pill that will ease the pain — doesn't matter all harmful side effects. In reality all you probably need to soothe your muscles-aspirin and rest. Another example is the "new and improved" version of washing, toothpaste and popular snacks that consumer product developers are trying to get us to buy in the supermarket. We really need "Doritos 3rd degree burn Habanero flavored? Scorchin ' Tortilla chips? It's all marketing.

In investing, stick with the tried and true mutual funds. Yes, it sounds boring, but that's OK. To find the best fund managers who are looking for consistent performers. This means that their funds in good markets and not as bad in a down market. These leaders have demonstrated that they are aware of the economic conditions are better than individual investors. We also wanted to managers who have been running it for a long time.

So don't get sucked in "new and improved" or fancy facility at the week that pushes some investment companies. Remember that there is no quick fix in investing. In the long run the best mutual funds can provide you with everything you need to achieve your goals.

Adam Bold is the founder mutual funds of the Bank that provides only the payment for an investment consultation areas transcontinental. He also hosts the show mutual fund, a call-in radio broadcasting across the country. Bold bold truth is the author of the book about investing (April 2009). Bold is Investment Director of mutual fund research centre, SEC registered investment adviser which provides investment funds and asset allocation recommendations and studies for stores in the system of mutual fund.


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