| STOP! Do not read another word! Advance mouse | | | | were not self-directed, the DJIA was an |
| to Do not pass GO. Do not collect another | | | | economic indicator, investing was a personal |
| prospectus. | | | | goal directed activity, and the Yankees won |
| | | | the American league pennant most of the time. |
| The NYSE advance-decline line has been | | | | |
| positive for nearly six years! (Contact the | | | | Almost everything (except the Yankees) |
| Author for the Spreadsheet.) | | | | changed with the onslaught of the "new |
| | | | generation" of Mutual Fund marketeers and |
| What is wrong with the averages? How sick are | | | | self-directed retirement vehicles. Wall |
| the Mutual Funds? | | | | Street invented market prediction techniques |
| | | | and new subdivisions of securities; |
| Here are some questions you should be asking. | | | | investment products were mass-produced in |
| 1) Is there "Investment Life" after Mutual | | | | every shape, size, model, and color, with |
| Funds? 2) What is the average investor | | | | great financial planning success; sales |
| speculator to do? (3) Who can you trust? (4) | | | | literature was sold as research/analysis, and |
| Why are people still throwing money at the | | | | financial institutions became |
| corrupt Mutual Funds? 5) Is there a safe(r) | | | | indistinguishable from one another. People |
| alternative? 6) Can a financial professional | | | | pay extra not to collect current interest and |
| function without funds? (7) Did Mutual Funds | | | | loss-taking is seen as a good idea. Unproven |
| make YOU lose money over the past several | | | | team-player Mutual Fund managers receive |
| years? (Answers below.) | | | | signing bonuses that would shock professional |
| | | | athletes, and 60-second sound bites on CNBC |
| Investing always involves more questions than | | | | define today's investment reality to the |
| answers, and the idea that Wall Street has | | | | masses. A calendar year is now long-term, buy |
| those answers and that they are imbedded in | | | | high/sell low a religion, and absolutely |
| the products that they market to the | | | | everyone, from accountants to wedding |
| "moneyed" public, is simply part of the | | | | planners, can sell Mutual Funds for extra |
| brainwashing of the American investor. So, | | | | cash. Wall Street is Las Vegas in pinstripes |
| too, is the myth that Mutual Funds are a | | | | and red suspenders. |
| safer investment mechanism than a properly | | | | |
| constructed portfolio of individual | | | | Are today's late trading, market timing, and |
| securities. Perhaps they should be, in | | | | executive suite scandals going to change |
| concept. In reality, they haven't been for | | | | things dramatically? It's doubtful, simply |
| decades. | | | | because Mutual Funds are so profitable for |
| | | | the institutions, so mindlessly easy to sell |
| Investors have always searched for a safe and | | | | for financial professionals, AND the only |
| easy way to protect and to grow their | | | | available investment medium for hundreds of |
| portfolios. This used to be accomplished by | | | | millions of employees throughout the country! |
| applying a combination of management and | | | | But is there a better way to invest safely |
| investment principles to the process. A | | | | and profitably in spite of all the problems? |
| diversified portfolio of high quality, | | | | You can't afford to be lazy anymore. Learn |
| profitable companies, and an appropriate | | | | how to manage a high quality, diversified |
| amount of less volatile income producers was | | | | portfolio of individual securities. |
| pretty easy to create, to manage, and to | | | | |
| monitor. | | | | Answering the six questions raised in the |
| | | | first paragraph, from the pages of the |
| It still is, when you realize that investing | | | | Business Best Seller: "The Brainwashing of |
| is not a competitive event. The original | | | | the American Investor". Yes Virginia, there |
| Mutual Fund managers actually knew how to do | | | | is investment life after Mutual Funds. (2) |
| this, were paid to do it, and were not at all | | | | Rediscover individual securities, after |
| influenced by the incredible confluence of | | | | taking a crash course in the principles of |
| outside forces that impacts their decision | | | | investing. (3) Trust yourself, once you've |
| making today. In their original form, Mutual | | | | taken the course. (4) Most investors have no |
| Funds were Trustee directed within the | | | | choice but to use Funds, the others learn |
| retirement benefit community, and a | | | | their lessons slowly. (5) Yes, individual |
| stepping-stone to a properly diversified, | | | | securities in a plain vanilla investment plan |
| individual security portfolio on the personal | | | | can be much safer. (6) Some planners have |
| level. Before the three-ring Wall Street | | | | de-toxed from funds, but it's a lot more like |
| circus came to town, there were only two | | | | work. Most won't try. (7) Nope, you'll have |
| "classes" of securities, retirement programs | | | | to take the blame for the losses yourself. |