No Load Fund/ETF Tracker updated through 3/5/2009

Ulli Uncategorized Contact

My latest No Load Fund/ETF Tracker has been posted at:

http://www.successful-investment.com/newsletter-archive.php

Despite feeble rebound attempts, the major indexes ended sharply lower as the bear dug in deeper. Our Trend Tracking Index (TTI) for domestic funds/ETFs remains below its trend line (red) by -12.84% thereby confirming the current bear market trend.



The international index now remains -23.22% below its own trend line, keeping us on the sidelines.



For more details, and the latest market commentary, as well as the updated No load Fund/ETF StatSheet, please see the above link.

Contact Ulli

Comments 3

  1. Regular readers of this blog may find interesting this page which appeared on Vanguard’s web site this week:

    Why Vanguard stock funds don’t cash out in a downturn

    ”Informed investors know how each investment fits into their plans and why they own that particular asset. If an investor purchases shares in a stock fund and the fund advisor later decides to sell all the holdings because cash seems more attractive, the investor’s personal asset allocation will change.”

    Translation: “We believe our informed investors are more concerned with big words like ‘asset allocation’ and ‘diversification’ than they are with saving themselves from a devastating bear market.”

    It gets better:

    ”The prospect of trading effectively to avoid losses and still participate in gains has always been more illusory than practical. Success requires overcoming three significant hurdles: accurately timing both the start and end of a bear market, covering trading costs, and selecting the right securities.”

    The words “Trend Tracking” must be too small and insignificant for anyone like Vanguards “informed investors.”

    And finally, it seems Vanguard hired Sherlock Holmes to work in their legal department:

    ”Diversification does not ensure a profit or protect against a loss in a declining market.”

    He said it…

    Disclosure: I maintain accounts with Vanguard and I have found their money markets to be a safe haven and I have done very well in the past year invested in other Vanguard fixed income, for example VFITX. However, because my views towards investing are so closely aligned with those of the author of this blog, I’m not afraid to explore what I believe to be grossly outdated points of view.

    G.H.

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