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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Wyätt Gwyön who wrote (83871)5/1/2007 4:55:18 PM
From: chowder  Read Replies (1) of 206334
 
Using mutual funds to gauge market strategies is a very biased and poor example.

Mutual funds have charters they must follow. They must be fully invested or invest in only a specific sector or index. They are very limited in reality.

Most fund managers may only see 4 or 5 very good opportunities out there but are limited to the amount they can buy. Then they have to buy second and third tier stocks, whether they want to or not, because their charter calls for a certain amount of diversity.

I have learned to ignore most studies pertaining to mutual funds due to their limitations on what they can do as opposed to what the would do given the freedom to do so.

It's hard to put skill to work if you must buy stocks you don't want to buy, but must because of the funds objectives.
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