Managed mutual funds compare their returns to a benchmark index. Many actively managed U.S. stock mutual funds compare their returns to the S&P 500 index. Surprisingly, the S&P is difficult for most funds to beat. Over the last 10 years, actively managed funds are ahead of the underlying index just 23% of the time (source: Rydex, Morningstar).
Source - http://www.econ101.com/hermes/Newsletters/nl2001fl3.html
Emotions and subjectivity can play an undesirable role in a person's ability to execute buy and sell decisions that ultimately determine results. The real scenario described in the accompanying article will help you to experience what happened in September, 2001 from the viewpoint of an asset manager.
Source - http://www.econ101.com/hermes/Newsletters/nl2001fl1.html
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Investing In The 21st Century — Rational Exuberance at 2006-01-23 19:40:19 The Markets of 2000 and 2001 have shattered the expectation of investors. Did you think stocks were automatically safe and profitable if you held them long enough? Many did and many have lost money. The 1990's marked a pinnacle of prosperity for equity investors. In contrast, today's investors are speculating how much lower the market will go. It is important to understand market declines and how
There once was a happy dollar. It was so happy with all the news it had heard about the NASDAQ candy store on Pleasure Island, it had to go see for itself. There was candy everywhere in 1999! So the happy dollar ate and ate and ate. It ate so much that it grew to $1.86!! All in one happy year.
Source - http://www.econ101.com/hermes/Newsletters/nl2000fl3.html
