HI Bill; Market up today on open ; Michel Burke can explain funds better than I can, he use to be a fund manager. I may track more than him at this time,but he knows the mechanics better than I do.
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Now here is something that can't be proven, but has enough
cercumstanual evidence that I belive it. It does not
apply to all funds, or even one at all times, but happens
a lot I'm sure.
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The fudge factor:
Some days funds get a lot of inflow, hot managers
arrange to have their portfolio cut off time ( NAV ) calculated
on the high side if inflow is much higher that redemptions,
and have a way of skewing the NAV lower if the redemptions
are high..it all balances out and in the long run but can
add a little hidden expense to the market timers. This I doubt
is done for any personal gain except to enhance the funds
prefromence over time. The amount on any given day may be
very small, but it adds over a year. I call it the fudge factor.
They will never admit to this, and there is no way to nail them
on it, and any way it does not really hurt the longer term
regular investor in the fund, in fact it helps him.
Jim
P.S.
Dollar also gained ground over the weekend..
Euorpe up, Asia mostly up..and we are headed up again.
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