MUTUAL FUNDS

blanchschwarz

Let’s get real about the lazy uniformed mutual fund contributor. One 90 % of all mutual fund contributors make less than 100,000 per year. They contribute randomly because of the tax avoidance policy we have employed over the past 30 years. Look in the early 1980 s pensions where being robbed by crocked business owners so the individual retirement account was born. Via congress new law a good thing right

Over the past 30 years the economic and congressional policies have pushed to benefit the mutual fund industry more and more. So what are the by-products of these policies? The biggest lack of accountability to C.E.O.S on corporate boards in 1980 around 10% of the U.S. population invested in equities. They were typically big speculators. So if a C.E.O. was robbing the revenue stream via his pay check or expense account and or board members. By Law an open transparent share holder meeting with an open proxy vote is mandated by law and still is to this day. So the major share holders would descend on the meeting and simply vote the board out or the C.E.O. Out. It’s called accountability

Now of course there are very few major share holders in the context or the Amount of shares in your typical public traded corporation. So there is no accountability. The average share holder owns a tiny fraction of the overall market cap. The average share holder dose not even know there is an open shareholder meeting every year and for that matter does not care. So C.E.O.S AND BOARD MEMBERS PAY THEM SELFS WHAT EVER THEY WANT BECAUSE THEY CAN.

Nearly every study over the past two decades on the transparency of what the fund actually owns finds over and over that 90 % of all funds regardless for their name and or charter OWN THE SAME 10 EQUITYS. You say how this can be that’s not what my statement says. HAVE YOU EVER HEARD OF WINDOW DREESING? Most funds participate in this LEAGL PRACTICE. By law the only time a fund must own a said equity in regard to the quarterly statement is the day the statement is mailed out that includes email.

Why do you think 90 % of funds underperform the market? Most fund managers do not even watch the market. They are lying on the beach with their Wife or girlfriend, or more commonly playing golf, because they are too anal to find a girlfriend. They simply buy the market via the dozens of E.T.F.s that are correlated to the indexes. One touch of the button and they own the whole market so when your statement comes out your fund is down say 10 % but the market is down 9%. Oh well look they own apple and msft and any other equity that is in vogue, YOU THINK. They own them for one day then back in the overall market E.T.F. you say where is the other 1 percent? Transaction cost.

Now how about the 10 % of funds that beat the market time tested over long periods of time. They are out there. That is the type of fund this site will be recommending this site BELIVES IN THE AGE OLD PHILOSOHY OF HARD WORK is the way to true Wealth.

Kevin Dwayne blanch

10/14/10