Hi Mike; I found it a good read too. For some time now I've been
saying the real market is not doing as good as the enhanced
indexes seem to tell us.
Message 10232348
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More presently the rotation out of larger caps into smaller one
by many mutual funbdums has them taking profit to buy "down"
the bigger problem here is "IF" the market falls before the
end of the Year , and stays there the smaller caps will take
even bigger hits no matter what the value in them is suppose
to be. This window dressing via rotation has a very good chance
of 1, not working, 2 making fund holders pay capital gains
on the positions sold while at the same time watching their
Fund suck air.
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It's ironic taht cap gains at the end of this year may amount
to more than most funds make for the year.
I know it did with KAUFX last year, looks to me
that others may join that little trap this year.
Getting stuck with both cap gains & in a fund going down is now
a real risk because of the rotation, unless it's in an ira
and even if they do manage to go up from here, many of them
will still pay more cap gains than they gain.
The reality of this may become more evident about Oct. or Nov.
Meanwhile the NYA
finance.yahoo.com
is only sitting 23.34 pts above where it was last July,
for only a 3.9% gain and it may lose taht, other indexes
look better but lets not forget the S&P has had to bring in
about 50 new stocks this year to keep it's image up, if
not for the enhancing it may would show a loss, if we
measure from HIGH to HIGH, instead of Low to High.
So All this wonderful Spin by CreemSpin at how much wealth
the market has created is just hog wash, in fact about all
it has created in the last year is more Debt.
Jim
Jim |
