GM,
"I marvel at how many technology mutual funds came in with gains under 10% in 1997, when the SP500 was up over 30%."
Well, the funds are laboring under the constraint that they HAVE to be invested, whether they like it or not, and tech funds have to be invested in technology. They don't have that much leeway in how much cash they have--courtesy again of the lawyers. It makes some sense--that is, individuals decide whether they will invest in the market or not, and which sectors, and if they will use funds or stocks. Once they decide on a given sector, and put their money in a fund specializing in that sector, they will be pretty much assured that they will be in that sector, for better or worse.
What I marvel at (if that is the word for it) is how much my own portfolio was up in October, and how much I let it crumble just 3 months later. And how I feel about it even though I am still somewhat net up! I'm not sure if I would feel better or worse if QNTM had just stayed in a narrow range between last July and now, even if the net effect would have been the same.
The perils and the glory of an unbalanced portfolio.
Sam |
