 Which stocks are best to invest in? |
| Please give me your top five stocks that are good to invest with, begining with the best ones.... |
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 Do you know anybody who consistantly beats the S&P500? |
| I've been investing for 10 years now. I'm convinced it's not possible to beat the market. Can anybody out there do it over the long-run besides Warren Buffett? I can't afford a ... |
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 What is your #1 stock pick (long) to hold 30 days or more? |
Tell me the symbol and exchange and why you like it so much. Thanx
PS Mine is SUN because Sunoco is a refiner and I still believe we will have another oil shortage probably just after the ... |
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 I own a rolex....? |
| how can i tell if its real?... |
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 Investing: How to get 5% or more interest ? |
On a no risk investment bank FDIC account.
What type of account should I be looking for?
CD's are out of the question, their rates are lower than ever.... |
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 I just got 600 dollars, what can i do to for an "investment".? |
| i need to make a quick buck, i won't to put my money in and pull out some profit. any ideas, hard-easy, legal or not. hook me up with some good answers yall.... |
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 What's the best investment for a college student to make with about 30 to 50 k? |
As a college student, what would you invest in with 30 to 50 k to work with. Flip a house?
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I'm obviously going to finish school, and this is money after I pay ... |
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 Do I need to sell all my stocks before I can begin transfering my Fidelity Roth IRA to Scottrade? |
| Or can I keep them as stocks? Fidelity charges too much for stock trades (freakin' $19.95!! Compared to Scottrade's $7)... |
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 Advice me in Forex Tradinfing..? |
| Hi guys am from india i want to start trading in Forex..but with how much amount is better to start..? which cross currency is better to trade in Forex? ...Thank Y... |
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 Savings bond? |
is it a good idea to buy a $100 savings bond every week for nine weeks?
-10 years later what results would i see?... |
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 Stock Market stupid, how to begin, is it worth it |
| I was wondering if it is worth it to invest in a stock even if I don't have much money to start. Is it difficult. Basically here's my question, if I buy one or two shares of a stock, say A... |
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Chris S | Why do people still invest in actively managed funds? |
The expected net return of an actively managed fund (especially hedge funds) is lower than that of index funds. SO why doesn't everyone invest in index funds?
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@JohnGalt: Why is indexing bad when fundamental change occurs? |
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B_sq
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Psychological is a big part of it. You are giving your money to a professional and probably somone with a proven historical track record (show great returns when the market was going up due to heavy leveraging) although.this could be argued as a fallacy for future investment descisions, but hedge funds are a different bread than hedge funds. They are typically reserved for the rich (possibly exclussivity factors) and are not constrained by any investment guidelines giving the manager more flexibility to invest in whatever they want.
Unfortuantely, approximately 8 out of 10 underperform the market and that is before their fees that often can exceed 1% for mutual funds and are 2 and 20 for Hedge Funds, so the right reason is that people are paying for a service and no one has told them that they could expose themselves to the market at a fraction of the management fees. I cannot comment on what used to be taught in schools, but 8 years ago, my finance professors were all pretty animate about the fallacies associated with actively managed funds versus passively managed ones (i.e. ETF's). |
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Metlin
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Not all managed funds have necessarily bad returns. In fact, despite the down turn, several have managed quite good returns.
However, what is currently happening in the managed fund industry is a sort of stabilization mode that's setting in.
The problem is that most hedge funds operate on about 10-15 fundamental strategies and their variants. Combined with the ban on shorting, and the market conditions, most of these strategies were badly affected and investors started pulling out their funds.
As a result, a lot of managed funds (and HFs) that were highly leveraged were strapped for cash because of their illiquid positions, and were selling the same stocks to get some cash (going back to the same strategy stuff).
As a result, these funds were being affected very badly. However, things have changed a lot since then.
The markets have hit hit rock bottom, investors are being a lot more discriminatory when it comes to choosing a good fund, the market being flushed with liquidity, and a lot of the also-rans are out of the scene.
As a result, a lot of the remaining managed funds are behaving like standard index funds for the moment (simply because they are averse to the more risky strategies).
However, I believe that this was the great fund shakedown, and as the less risky ones have shown (e.g. GMO), those that remain standing will eventually have good returns. |
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Christian Brown
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Good question. And for the most part, actively managed funds actually do worse than index funds because the fees taken from managed funds end up outweighing any benefits from them. In some cases though managed funds do greatly outperform the market, (be it by luck or genuine skill). I wouldn't mind investing in a fund managed by Warren Buffet.
I think it's the greed that drives people to invest in managed funds. They hear about how well one did so they want in on it. Even if their odds are actually against them. You can never tell if the manager you are hiring is good or not. It's probably more difficult to pick a money manager than it is just to pick your own stocks. |
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JohnGalt
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Every dog has its day. The day of the index funds may be close to done. In a "sea change" kind of economy, where banking, energy, and real estate are all undergoing massive fundamental change, indexing may be a really stupid thing to do. |
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Joey L:level 1 troll... NOT
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The lack of active management (stock picking and market timing) usually gives the advantage of lower fees and lower taxes in taxable accounts. However, the fees will generally reduce the return to the investor relative to the index. In addition it is usually impossible to precisely mirror the index as the models for sampling and mirroring, by their nature, cannot be 100% accurate
http://en.wikipedia.org/wiki/Index_fund
http://en.wikipedia.org/wiki/Hedge_funds#Hedge_fund_risk |
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Serious M
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managed accounts means professional trade for people
google for HSFX Asset Management , you will understand why |
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Thor
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Your assumption that the return is lower is false imo. It is more true it you average the funds' returns over a long term. Index funds average the whole market.
But there is much sector rotation and different types of funds do better at different times. Small caps do well with low interest rates and an improving economy. They return higher than indexes at much higher at those times.
Value funds have done poorly for many years because there were not a lot of cheap funds for this decade or longer. But now? There is huge value due to the market fall. It might be a great time to look at value.
Same is true with Big Caps and Blue Chips having been a bit overvalued even after the internet bubble burst. The Dow index fell less than the rest of the market and those were a little overpriced imo. Not now.
Sector stocks? Commodities and oil did far better than the market most of this decade but also may have taken the bigger hit in the last year.
With index funds you get the dogs along with the good stocks. In an active managed fund you get a better selection because they are selected.
I have one that regularly has outperformed the market.
You can well if you have a good sense when to buy low in to a sector and rotate out when the prices rise. But that is a type of market timing by sector. It is easier to do since the parameters are longer term.
I have plenty of reasons for investing in different ways with active management rather than just take the "average". |
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jose l
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i don't know let me call peter lynch at fidelity an ask what he did for magellan an let me call the all the good managers an tell them their fired cause people want to pay less fees for their professional skills i can give you at least a dozen fund names that have put out an average 11% in the past 10 years |
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