Prosperity

It has fallen upon the consumer to make our economy strong. All the politicians, economists and talking heads on TV are telling him (that's you and me) to get out there and spend your money. Buy that new car, build a new house and fly off to some remote place for an expensive vacation.

Where did the idea that consumer borrowing is a recipe for prosperity? As I recall when I was a kid my Dad told me to work hard, save my money and invest wisely. That still seems like a good idea. Where have I gone wrong to want to live within my means and save some of what I earn?

Corporations have also taken on huge amounts of debt. Many businesses were happy with a net, net profit of 5% to 10% yet today the real cost of company debt is running about 10% which doesn't leave much for the bottom line. Fewer and fewer companies are paying dividends because they don't have enough money left over for their investors. Now many have such poor cash flow that they do not have the cash for new equipment and the banks are not in a lending mood. Profit margins are at their lowest in the past 50 years. The talking heads on CNBC-TV mention capital appreciation as the way to make your profit. Pick a good stock and watch it go up.

We have had an 18-year bull market that ended in 2000. All you needed was a dartboard to be able to choose a stock that was going up. Everyone was weaned away from dividends. As long as it was going up who cares if you get a little check at the end of the year? Here is an interesting statistic that may shock you as it did me. From 1871 to 1997, 126 years, common stocks went up about 7% per year, BUT only 1.6% of the increase was due to price appreciation. The balance of 5.4% came from dividends. And today, for all practical purposes, there aren't any.

No one, including Mr. Greenspan, is encouraging you to save money. Why? Because for every one percent increase in the national savings rate it stops the spending of $75 billion (yes, that's a B). That would slow the economic recovery and our Washington politicians don't want that. Debt has become the "in" thing. People brag about how much they owe.

If you want prosperity now and when you retire you must create it for yourself. Don't figure that Uncle Sam is going to maintain your current life style after you quit working.

Saving money, paying your bills and smart investing have not gone out of style.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

Fund managers' picks: Large, mid & smallcap stocks that MFs bought, sold in Dec  Moneycontrol.comMF assets declined to Rs 22.8 lakh crore in December 2018 from Rs 23.4 lakh core in Nov 2018 on the back of moderation in the flows in equity funds and ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Tipping Point: Should you mimic the stock picks of fund managers?  Business StandardFund managers do have a better understanding of businesses than retail investors. But picking the same stocks that they have may not work for the latter for ...
Hot and Cold Stocks of Mutual Funds in November 2018  MoneylifeIn November 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
The dangers of high mutual fund inflows  LivemintIndian mutual funds have pumped about ₹1.2 trillion into the equity markets in each of the last two years.
Should you invest in small cap mutual funds?  Dalal Street Investment JournalSmall-cap mutual funds invest in small companies who are either start-ups or are still in its development stage. So the objective of the mutual fund manager is to ...
Best mutual funds to invest in India  Times of IndiaFAQs News: Market analyst says that it would be difficult for investors to get high returns in 2018 pointing to the volatility faced by the stock market. The inv.
MFs reduce holding in auto stocks in Dec  Financial ChronicleMutual funds reduced their holding in top auto sector companies Maruti Suzuki and Hero MotoCorp in December month while they aggressively bought select ...
Sebi issues norms for mutual funds investments in derivatives  Moneycontrol.comCurrently, mutual fund schemes are permitted to undertake transactions in equity derivatives but cannot write options or purchase instruments with embedded ...
Large-cap and Mid-cap Stocks Top Mutual Fund Schemes Are Betting On  MoneylifeEquity mutual funds (MFs) are run by expert stock-pickers.
10 small equity mutual funds that have given very good risk-adjusted returns  Economic TimesMany small-sized funds have delivered handsome risk-adjusted returns. Find out why you should not ignore them.
SEBI tweaks stock weightage norms for equity ETFs, index funds  Moneycontrol.comIn a circular issued to all mutual funds and asset management companies, SEBI said an index used for equity ETFs or index funds should have at least 10 stocks ...
We have moderate return expectations from market this year: Rahul Singh, Tata Mutual Fund  Economic TimesThe multiples are partly factoring in earnings recovery in FY20. We are also seeing some recovery in FY19. The earnings cut have not been as deep as they ...
Mutual Fund Update: Top 5 stocks that MFs sold  Dalal Street Investment JournalMutual funds are institutional investors, the buying and selling transaction of fund houses happen in huge numbers which also affects the stock prices in some or ...
India's Stocks Are Hostage to Fed Rate Cycle, Mutual Fund Giant Says  BloombergQuint(Bloomberg) -- For all the domestic drivers of India's stocks -- from oil to elections to shadow banking shakeouts -- the U.S. Federal Reserve holds the most sway, ...
How blue chips and top largecaps let your equity funds down in 2018  Economic TimesReturns from most of the top stocks held by mutual funds do not paint a pretty picture.
New to stocks? Try aggressive hybrid funds: Dhirendra Kumar  Economic TimesThe promise of a small cap is that they turn out to be a bonanza when they become a midcap or large cap, says Dhirendra Kumar, CEO, Value Research.
Gold, mutual funds, equity - where to invest in 2019?  Moneycontrol.comAs we enter 2019, the question on everyone's mind is: can we say goodbye to market volatility that 2018 unleashed upon us? The answer may not be that simple ...
The 5 Best Mutual Funds to Invest In the Semiconductor Space  Investorplace.comSemiconductor funds could be all-star rebound plays this year. Here five of the best mutual funds to invest in that theme.
Mutual funds’ AUM falls by 5% to Rs 22.85 lakh crore in Dec  Economic TimesNEW DELHI: Retail investors continued to pour money in mutual funds through systematic investment plans (SIPs) as the industry received Rs 8,022.33 crore ...
Berko: Do not invest in Chinese stocks, mutual funds  The ColumbianDear Mr. Berko: My wife and I are thinking of investing in Chinese stocks or mutual funds. If we were to buy stocks, we'd invest $10000 each in Alibaba, Noble ...
Investors are hiding out in cash: Assets in money market funds surge past $3 trillion  CNBCCash is becoming the king as investors flee volatile stock markets. Assets in money market mutual funds have swollen to $3.066 trillion, their highest level since ...
Why Investment Portfolios Fail: The 4 "P"s  The Motley FoolManaging your own money is a lot like dating. There's that initial spark and energy that keeps things interesting for the first six months, but then something ...
Year-end special: Some challenges will continue in 2019, says Jinesh Gopani of Axis Mutual Fund  Economic TimesAxis Mutual Fund is the equity fund house of the year. Axis equity schemes are toppers in almost every equity mutual fund category.
Here are 2018’s best & worst-performing mutual funds  Economic TimesThe performance of equity mutual funds was uninspiring through most of 2018, with the best-performing fund giving just 6 per cent return for the year. Among the ...
Sebi brings cybersecurity framework for mutual funds and AMCs  Economic TimesNEW DELHI: Markets regulator Sebi Thursday put in place a robust and stricter cybersecurity framework for mutual funds and asset management companies ...
Experts explain what to do with your money right now, whether or not a recession is looming  Business InsiderExperts broke down four different options: investing in index funds, stock-picking, storing money in high-yield savings, or in a checking account.
India's stocks are hostage to US Fed rate cycle: Mutual fund giant  The New Indian ExpressWhile the US central bank's influence on emerging assets is hardly an unknown phenomenon, India's USD 2 trillion stock market has also been whipsawed in ...
4 Small-Cap Growth Mutual Funds for 2019  Zacks.comSmall-cap funds that offer good earnings potential could be your best bet amid economic tailwinds and growth projections.
19 Picks Based on Experts' Forecasts  Morningstar.comExperts think bonds and foreign stocks, especially emerging markets, are attractive. Here are Morningstar's best picks for those themes.
The Mutual Fund Show: Should Investors Opt For ETFs Over Active Funds?  BloombergQuintThe heightened market volatility in 2018 took a toll on the performance of large cap schemes as exchange-traded funds—which track an index, a commodity, ...
Net equity mutual fund inflow hits 3-month low in November  Economic TimesEquity mutual fund schemes registered a net inflow of Rs 8,414 crore in November, making it the lowest in three months, mainly due to a volatile market. With this ...
India's stocks held hostage to Fed cycle, says S Naren  Economic TimesBy Ameya Karve For all the domestic drivers of India's stocks -- from oil to elections to shadow banking shakeouts -- the U.S. Federal Reserve holds the most ...
Sankaran Naren of ICICI Prudential AMC sees Indian stocks held hostage to Fed cycle  LivemintInvestors need to brace for a run of constrained returns that will last until the Fed's Jerome Powell makes a policy U-turn, says Sankaran Naren, chief investment ...
4 Best Energy Mutual Funds to Buy in 2019  Zacks.comOil prices could continue gaining through 2019, propped by positive macroeconomic catalysts.
REIT, Medical Stocks Lead New Buys By Best Mutual Funds  Investor's Business DailySee how REIT stocks and medical stocks like Amgen, Biogen and Edwards Lifesciences lead the latest list of new buys by the best mutual funds.
Should I trade stock mutual funds for CDs?  MoneyRates.comMoving out of stock mutual funds into CDs may seem like a good way to manage risk during a volatile market, but wide swings in asset allocation could make ...
3 Oppenheimer Funds to Add to Your Portfolio  Zacks.comBelow we share with you three top-ranked Oppenheimer mutual funds. Each has earned a Zacks #1 Rank (Strong Buy)
Here's Why Stocks Have Sold Off So Steeply In December  ForbesA TV broadcast of Fed Chairman Jerome Powell announcing interest rate hikes on the floor of the NYSE on Wednesday, December 19, 2018. The rest of the ...
ETF sales grow, but mutual funds still rule  MoneySenseETF sales outpaced mutual fund sales for the first time in 2018.
Look at These 3 Mutual Funds From Franklin Templeton  Zacks.comBelow we share with you three top-ranked Franklin Templeton mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)
U.S. stock funds post record December withdrawals: estimate  ReutersNEW YORK (Reuters) - Investors pulled $98 billion from U.S.-based stock funds in December, a calendar-month record that emphasizes the diminishing ...
Simplify Your Investments With the 3-Fund Portfolio  LifehackerOne of the key questions of investing is, naturally, what exactly to invest in. You know it should be a mutual fund, right? And you've heard that “low cost” and ...
7 Best ETFs for Novice Investors  Investorplace.comThese are the best ETFs for new investors who are just starting to forge their portfolios. Here's what you need to know about each.
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
U.S. stock funds set for record monthly withdrawals: Lipper  ReutersNEW YORK (Reuters) - Investors fled U.S.-based stock funds in the latest week, setting those investments up for their biggest month of withdrawals on record, ...
Warning: These 3 Stocks Could Plummet in 2019  The Motley Fool CanadaShorting stocks is a hard business. I wouldn't recommend it for anyone, especially retail investors. There are several challenges when betting against a company ...
Stocks in the News: Investors Keen on Oxford Industries, Inc. (NYSE:OXM) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Oxford Industries, Inc. (NYSE:OXM) as their share price hit $75.77 at the end of the most recent trading session.
Is your mutual fund buying or selling stocks too much?  LivemintHere are equity mutual fund schemes with the highest turnover.
Stock Update: Investors Taking a Second Look at ManpowerGroup Inc. (NYSE:MAN) After Recent Market Moves  The Coin GuildMajor market players are buzzing over ManpowerGroup Inc. (NYSE:MAN) as their share price hit $70.99 at the end of the most recent trading session.
Stocks in the News: Investors Keen on Meta Financial Group, Inc. (NASDAQ:CASH) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Meta Financial Group, Inc. (NASDAQ:CASH) as their share price hit $21.34 at the end of the most recent trading session.
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comMF industry assets grew to Rs 23.4 lakh crore, on the back of improved inflows into liquid funds and steady equity markets.
What Professional US Stock Investors Get Right  Morningstar.comScoring Managers “Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors,” a draft paper by Klakow Akepanidtaworn, Rick ...
How Much Dividend Income Will Warren Buffett's Berkshire Hathaway Generate in 2019?  The Motley FoolHint: We're talking about billions of dollars in annual income.
Investors give too much weight to the market’s randomness  MarketWatchMany who try to beat the market are convinced they see predictable patterns.
Traders' Diary: Bulls still holding their ground  Economic TimesStock benchmarks oscillated between profits and losses throughout Wednesday, only to end flat with a positive bias amid optimism in global peers.
Top Stocks: Heath Care Provider LHC Group Reinvigorated After Failed Breakout  Investor's Business DailyLHC Group is one of many top stocks in the health care sector with robust fundamentals. Its chart doesn't look too bad, either. The stock has been in rally mode ...
Stock Update: Investors Taking a Second Look at Century Aluminum Company (NASDAQ:CENX) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Century Aluminum Company (NASDAQ:CENX) as their share price hit $8.57 at the end of the most recent trading session ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
Interest rates may have peaked and could fall - should you invest in debt funds now?  Moneycontrol.comOn December 12, data shared by the government pegged the inflation at 2.33 percent. Earlier this month Bank of America Merrill Lynch (BoAML), a foreign bank ...
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
Capital Gains Tax Rates: A Comprehensive Guide  Motley FoolThe goal of every investor is to make money on their investments. However, when you sell an investment at a profit, you'll discover who else has an interest in ...
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe HDFC Asset Management Co. Ltd stock closed 65% up on the first day of listing over its IPO price of ₹1,100 per share. Investors who sold on day one, saw ...
Mutual fund lesson: What should you do in volatile markets?  Moneycontrol.comCost of investing in equities is that it is a volatile asset class- there will be times when your portfolio value will be lower than what you invested.
Small- and mid-cap mutual funds open doors again, but should you invest?  LivemintL&T Emerging Businesses Fund and DSP Small Cap Fund have allowed *fresh* mutual fund investments, taking advantage of a continued correction in small- ...
New stock ideas boost equity mutual fund portfolios  LivemintIt is imperative for mutual fund houses to beef up their research capabilities, to be able to identify more winning new ideas.
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesBy Dhirendra Kumar Hopefully, by now my columns have convinced you that most of your long-term investments should be in equity. The next question to be ...
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
Why your mutual fund earned you less than Nifty in recent market rally  Economic TimesThe more the number of stocks in an index, the weaker is its performance.
Value focussed MF are cutting their exposure to Indian stocks. What about you?  Moneycontrol.comAs valuations climb, the funds have chosen to stay light on Indian stocks and exposure to bonds and arbitrage has gone up.
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comWhile selecting a scheme for investment or while deciding whether to continue with a current investment, a fund's performance track record does play a critical ...
Mutual fund holdings in IT stocks touch all-time high  Economic TimesMumbai: Fund managers are betting big on the IT sector, on the back of an improving global macro environment, depreciating rupee and rise in IT spends.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
These 18 consistent mutual funds may help you to beat stock market volatility  Economic TimesMany equity mutual fund advisors abhor volatility in the stock market. They are always searching for ways to tackle this beast which gives them sleepless nights.
5 strategies for investing in mutual fund in the current market to get good returns  Moneycontrol.comMutual fund investing is all about ascertaining your goals and setting out to reach them.
Should I cut down my stock allocation and invest more in mutual funds?  Economic TimesMy risk appetite is moderately high and my investment horizon is 10 years. Please review my portfolio. I am investing in the following mutual fund schemes:
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
List of best mutual fund portfolios as per your risk appetite  Moneycontrol.comYou can build a portfolio of mutual fund schemes based on your risk profile.
Mutual fund managers bought & sold these 20 stocks in May  Moneycontrol.comRelative valuations are attractive and around average, but midcap valuations are still looking stretched despite the recent drawdown, Morgan Stanley said in a ...
Do not make these 7 mistakes while investing in mutual funds  Moneycontrol.comNever forget that you are investing because you have to achieve your financial goals. Investing without a goal is akin to travelling without a destination.
Some international funds are giving around 40% returns. Should you invest?  Economic TimesInternational mutual funds are topping the return charts. The category has returned around 20 per cent in one year. Should retail investors bet on these schemes ...
Mutual Funds For First Time Manage More Money In Stocks Than Insurers  BloombergQuintMutual funds for the first time manage more money in equities than insurers as the last stock rout erased the gap that started narrowing after demonetisation.
Top stocks bought and sold by mutual funds in June 2018  IndiainfolineInvestors should focus on longevity to create wealth. We advise investors to stay invested in those stocks whose growth story is still intact.
Fund managers' bets: Top 10 large, mid and small-cap stocks that MFs bought in October  Moneycontrol.comMF industry assets grew to Rs 22.2 lakh crore on the back of improved inflows into equity-oriented and liquid funds.
How to Invest in Mutual Funds  The Motley FoolIf you want to understand how to pick the right mutual fund for you, you've come to the right place. In the guide below, I've put together all the major pieces of ...
Bleeding mutual funds: Should you go back to good old fixed deposits?  Moneycontrol.comAre you worried about the losses on your investments in mutual fund schemes? You are not alone. There are many investors who dumped their good old fixed ...
How diversified should a mutual fund be?  LivemintThe extent of diversification is driven by the mutual fund's strategy and the market segment it invests in.
Benefits of asset allocation in mutual funds  Economic TimesWith macros looking weak and stock market indices at a new high, financial planners believe it is important for investors to follow the principle of asset allocation.
HDFC AMC, Reliance Nippon stocks fall over 9% after Sebi caps expense ratio of mutual funds  Business TodayThe stocks of asset management companies (AMCs) fell in trade today on fears of lower revenues after market regulator Sebi capped expense ratio for mutual ...
Top 10 large, mid and smallcap stocks which fund managers bought & sold in September  Moneycontrol.comFears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans, or liquid funds, were the worst hit.
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
Top 10 mutual funds which can double your wealth in long term  The Financial ExpressMutual funds are one of the most popular and smart ways for investors to build wealth over the long term. One can also double one's money, if planned properly.

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