another responsible interview on CNBC, despite Haines
some guest came on to discuss a book "Mutual Fund Trap"
the author was formerly an under-secretary of something
like Attorney General or Justice, I cannot remember
his main point is that mutual funds are loaded with costs that drag on performance, such as load fees, capital gains taxes from turnover, high mgmt salaries and staff
he claims that since 1990, mutual funds underperformed index funds by 7%
host Haines was somewhat sarcastic in tone
he seemed superior and rude
he asked if guys like guest host Ned Reilly of StateSteet were not doing their jobs, feeding off the public
Ned Reilly stepped in and confirmed the author's point, and added one more
Ned said that many mutual fund investors abandon last year's losers, jump on last year's winners, only to find the former winners to be next year's losers, thus adding to underperformance on an even larger scale
Ned suggested sticking with a favorite fund for years, not swapping around, chasing
Haines was taken aback, as though he was unaware of mutual fund underperformance
the guest author reiterated his points
Haines was made to look arrogant, rude, stupid
bad combination
my firm offers a poor set of 401k choices, no gold funds
/ jim |
