Surviving Without Mutual Funds, Part One

STOP! Do not read another word! Advance mouse to Investopedia.com and look up advance/decline line. Do not pass GO. Do not collect another prospectus.

The NYSE advance-decline line has been positive for nearly six years! (Contact the Author for the Spreadsheet.)

What is wrong with the averages? How sick are the Mutual Funds?

Here are some questions you should be asking:
1) Is there “Investment Life” after Mutual Funds?
A: Yes Virginia, there is investment life after Mutual Funds.

2) What is the average investor/speculator to do?
A: Rediscover individual securities, after taking a crash course in the principles of investing.

3) Who can you trust?
A: Trust yourself, once you’ve taken the course.

4) Why are people still throwing money at the corrupt Mutual Funds?
A: Most investors have no choice but to use Funds, the others learn their lessons slowly.

5) Is there a safe(r) alternative?
A: Yes, individual securities in a plain vanilla investment plan can be much safer.

6) Can a financial professional function without funds?
A: Some planners have de-toxed from funds, but it’s a lot more like work. Most won’t try.

7) Did Mutual Funds make YOU lose money over the past several years?
A: Nope, you’ll have to take the blame for the losses yourself.

Investing always involves more questions than answers, and the idea that Wall Street has those answers and that they are imbedded in the products that they market to the “moneyed” public, is simply part of the brainwashing of the American investor.

So, too, is the myth that Mutual Funds are a safer investment mechanism than a properly constructed portfolio of individual securities. Perhaps they should be, in concept. In reality, [Mutual Funds] haven’t been for decades.

Investors have always searched for a safe and easy way to protect and to grow their portfolios. This used to be accomplished by applying a combination of management and investment principles to the process.

A diversified portfolio of high quality, profitable companies, and an appropriate amount of less volatile income producers was pretty easy to create, to manage, and to monitor.

This article will continue in the next post…Â

Steve Selengut sanserve@aol.com steve@sancoservices.com 800-245-0494 Professional Portfolio Manager – Separate Accounts Only, & No OE Mutual Funds Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

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