Comments on: Mutual funds suck! http://www.sequenceinc.com/fraudfiles/2008/08/29/mutual-funds-suck/ Sat, 20 Mar 2010 22:05:23 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Tracy Coenen http://www.sequenceinc.com/fraudfiles/2008/08/29/mutual-funds-suck/comment-page-1/#comment-163463 Tracy Coenen Sat, 30 Aug 2008 18:26:56 +0000 http://www.sequence-inc.com/fraudfiles/?p=1808#comment-163463 I appreciate your comments, Lee! It just makes no intuitive sense: These guys are paid handsomely to lose money for us? I'm no expert stock trader, but I've done far better in my self-directed accounts than I have in mutual funds. Mutual funds are good in theory: They help the average Joe diversify and manage risk. But it seems there's way too much downside in mutual funds, which is exactly what they were supposed to be a cure for! I appreciate your comments, Lee!

It just makes no intuitive sense: These guys are paid handsomely to lose money for us? I’m no expert stock trader, but I’ve done far better in my self-directed accounts than I have in mutual funds.

Mutual funds are good in theory: They help the average Joe diversify and manage risk. But it seems there’s way too much downside in mutual funds, which is exactly what they were supposed to be a cure for!

]]> By: Lee D http://www.sequenceinc.com/fraudfiles/2008/08/29/mutual-funds-suck/comment-page-1/#comment-163458 Lee D Sat, 30 Aug 2008 15:07:53 +0000 http://www.sequence-inc.com/fraudfiles/?p=1808#comment-163458 Tracy, the reality is that unlike other professions like say accounting, where the facts are immutable, any financial planning that goes beyond government bonds and seeks to balance risk and return is, at best, a bunch of monkeys with dartboards. In my opinon two of the best books to help inform your thinking on the subject are Taleb's Fooled By Randomness and Gary Weiss' Wall Street Versus America. My personal feeling is, as a business owner, I would never delegate my decision making to someone else, so why should I trust a bunch of overpaid dart-throwing-monkeys with my money, hence the value of a self-directed brokerage account. I can't say I'm 100% satisfied with my portfolio in the current market, but a) I'm not broke, and b) given the facts you reference, who's to say a so-called professional would do any better? Tracy, the reality is that unlike other professions like say accounting, where the facts are immutable, any financial planning that goes beyond government bonds and seeks to balance risk and return is, at best, a bunch of monkeys with dartboards.

In my opinon two of the best books to help inform your thinking on the subject are Taleb’s Fooled By Randomness and Gary Weiss’ Wall Street Versus America.

My personal feeling is, as a business owner, I would never delegate my decision making to someone else, so why should I trust a bunch of overpaid dart-throwing-monkeys with my money, hence the value of a self-directed brokerage account. I can’t say I’m 100% satisfied with my portfolio in the current market, but a) I’m not broke, and b) given the facts you reference, who’s to say a so-called professional would do any better?

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