Fools Gold

The stock market has been in an up trend for more than a year. Almost everyone is feeling good and many believe we are back in the old bull market with the previous high of the Dow Jones Industrial Average just about to be broken.

This could be the case, but what if what we are seeing is all glitter and only has sparkle with no value whatsoever. Any one who tells you he knows is either a liar or a fool. Only the market itself will tell what it is doing and very few take the time to learn its language.

The most important thing about the stock market is the major trend. For the past year it has been up and during that time you should have owned equities ? stocks and mutual funds. Some time in the future it will turn down again (it always does despite what you broker says) and that is when you should sell your equities and keep your money in a money market account. You won't be making much, but it takes a lot more effort to make money than it does to keep from losing it.

Brokers will tell you there is no way you can determine the direction of the market. They are either lying or stupid. It is not that obscure. To mine for gold in the stock market I recommend you look at the Investors Business Daily Mutual Fund Index. Notice that the Index price is currently above the 200-day Moving Average. That penetration occurred in April 2003 and had stayed that way until May of 2004 when it broke down.

When that happened you sold everything and went to cash. It went back up through that 200 line shortly after so you should have bought back into equities. Now you are fully invested again maybe in other equities that are performing better than those you had before. Is this a new gold mine or fool's gold? You don't know yet, but you will learn that the trend is your friend.

If you did sell out your previous stocks or mutual funds you should have looked to see where you want to buy again. There is something called sector rotation that will definitely increase the return on your money. At times the technical stocks and funds do better than the real estate group or the banking group. You should be where the strongest funds are and these you can find with a search on the Internet.

Don't be a fool and try to ride out a weak stock or group. Just a few years ago AT&T was $100 per share. Today it is $15. So much for the widows and orphans; they have lost their gold.

What might seem to be a sure thing can turn into a financial disaster - a fool and his gold will soon be parted. Never take a big loss. Listen to the market and learn to stay with the trend.

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:

Here are the mutual fund favourites in April  MoneycontrolMaximum month-on-month change in value was seen in TCS, ICICI Bank and Kotak Mahindra Bank.
Reliance Capital to exit mutual funds biz; sells stake to JV partner Nippon Life Insurance  Economic TimesNew Delhi: Reliance Capital (Rcap) Thursday said it will exit the mutual funds business by selling its stake in Reliance Nippon Life Asset Management Ltd ...
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Large cap index mutual funds continue to outshine actively-managed large cap schemes  Economic TimesLarge cap index funds are outperforming the actively-managed large cap mutual fund schemes in the past one-year period. Kotak NV 20 ETF is topping the ...
Beaten-down midcaps could be on their way out of the woods  Economic TimesBattered mid-cap stocks may attract investors once again now that their valuations are lower and amid expectations of more flows into domestic mutual funds if ...
Should you invest in DSP Quant Fund NFO?  LivemintDSP Mutual Fund has launched a new fund offer (NFO) for DSP Quant Fund. The new scheme proposes to select stocks based on pre-determined rules and ...
Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
More active managers are beating the stock market again thanks to the trade war: Goldman Sachs  MarketWatchActive stock pickers are having one of their best years since the financial crisis, and these money managers can thank rising U.S.-China trade tensions for their ...
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
Stocks vs Mutual Funds: Which is a Better Option to Invest?  EntrepreneurStocks and Mutual Funds have their own set of hiccups, which are better to know before making your investments.
As market prepares for Modi 2.0, here are 13 stocks to invest in for five years  Moneycontrol.comEarly trends put NDA in a comfortable position to form the government that has, to an extent, already been factored by the market after exit polls.
Hot and Cold Stocks of Mutual Funds in April 2019  MoneylifeIn April 2019, Larsen & Toubro and Hindustan Petroleum Corporation(HPCL) were the most preferred stocks of Indian mutual funds.
How to Choose Between ETFs and Mutual Funds  U.S. News & World ReportInvestors can add either mutual funds or ETFs to their portfolio.
Sensex hits 40k; dips 1,313 pts from high by close; Nifty holds 11,650  Business StandardDuring the day, Sensex and Nifty hit the levels of 40000 and 12000, respectively, for the first-ever time.
Should you invest in the DSP Quant Fund NFO?  LivemintDSP Quant Fund to select stocks based on pre-determined rules to eliminate bias.The NFO of DSP Quant Fund will remain open till 3 June.
Indians won’t invest in stocks, debt till election 2019 ends  QuartzInvestors in India are waiting the election out. In April, inflows into equity mutual funds (MFs) dipped to their lowest levels since January 2017, according to data ...
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Retail Investors Should Take Exposure To Midcap Stocks Through Mutual Fund Route: Ankit Jain, Mirae Asset Global Investments  BW BusinessworldIn an interview with BW Businessworld, Ankit Jain, Fund Manager, Mirae Asset Global Investments (India), talks about Consumption led funds, lending rates and ...
Financial planners recommend new fund from Mirae Mutual Fund  Economic TimesConsistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to ...
Will these mutual funds help me to build Rs 50 lakh?  Economic TimesI am a new investor in mutual funds. I am 30 years. My aim is to build a corpus of Rs 50 lakh or more in 10 years. I am planning to invest through SIP in mutual ...
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
4 Hartford Mutual Funds to Invest in Now  NasdaqHartford Funds, a segment of The Hartford Financial Services Group, Inc. (HIG), had total assets of around $104.8 billion under management (as of Dec.
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
What netas invest in: mutual funds, Reliance, KF shares  Deccan HeraldFixed deposits and tax-free bonds seem to be among the most favoured financial investments for the political leaders fighting the 2019 Lok Sabha polls, while ...
How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
China Stocks at the Mercy of Foreigners Like Never Before  BloombergThe record pace of foreign selling in China's equities matters now more than ever. While overseas traders are quickly souring on yuan assets, they've also never ...
Holding of mutual funds in private lenders at a fresh high in April  Business StandardThe holding of mutual funds (MFs) in private banks saw its weightage increase to a new high of 19.3 per cent in April — the seventh straight month of increase.
What Type of Mutual Fund Schemes Should You Invest in? Know Here  News18Equity funds are mutual funds which invest majorly in equity stocks of listed companies. They are considered to be risky but they tend to give higher returns in the ...
Best And Worst Of Q2 2019: Industrials ETFs And Mutual Funds  Seeking AlphaThe Industrials sector ranks seventh in Q2'19. Based on an aggregation of ratings of 426 stocks in the Industrials sector. ITB is our top-rated Industrials sect.
Betting on: FIIs, MFs raise stake consistently in 8 companies in last 4 quarters  MoneycontrolThe first and the most important step towards wealth creation is stock selection. Ideally, stocks selected or filtered should be based on your own research ...
IT, pharma and telecom top sectoral picks for MFs in April  Economic TimesIn the absence of earnings growth triggers, which has shrunk the universe of investible ideas, leading fund houses have resorted to selling more of a part of their ...
Look who is sitting on a cash pile to buy stocks after election result  Economic TimesMUMBAI: The domestic equity market is likely to trade in a narrow range until the election results, with foreign fund flows slowing down and mutual funds opting ...
Mutual Fund Update: Stocks that attracted fund managers in April 2019  Dalal Street Investment JournalIf we look at the March 2019 data, then the energy sector was the one that featured on top of the buying done by the fund managers. However, the story in the ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Best And Worst Q2 2019: Real Estate ETFs And Mutual Funds  Seeking AlphaThe Real Estate sector ranks last in Q2'19. Based on an aggregation of ratings of 180 stocks in the Real Estate sector. No Real Estate sector ETFs receive a ...
Vanguard issues 10-year forecast for stock, bond market returns  Philly.comVanguard on Tuesday released 10-year projected returns for stock and bond markets, an eagerly awaited piece of research out of the world's largest mutual ...
Liquidity Scare: NBFC stocks slide on fears of spillover  Economic TimesAny default or downgrades in NBFC space will have a cascading impact on the entire sector.
What Makes Berkshire Hathaway Shares Better Than an Actively Managed Mutual Fund?  Motley FoolTo start with, the company is a lot more than Warren Buffett's carefully selected stock portfolio.
The US stock market can’t stop, won’t stop its endless rally  Economic TimesThe U.S. stock market in 2019 has exploded, with the S&P 500 index rising 18 percent and the total market adding about $5 trillion in value. Clearly, it stands to ...
A Look At How To Ride Out Stock Market Storms  NPREscalating trade wars and volatile markets cause some investors to make hasty decisions that can lead to financially damaging decisions. But there are ways to ...
People Want to Buy Uber Stock  Bloomberg“Uber IPO Is Oversubscribed by Day Two of Roadshow,” it says here, but I would say that Uber Technologies Inc.'s initial public offering was oversubscribed by ...
Yes Bank plummets 29% in a day; Is it a value buy now?  Economic TimesMUMBAI: Shares of Yes Bank plunged 29% on Tuesday after reporting its first ever quarterly loss, leading to an erosion of Rs 16,000 crore in market ...
Best Online Stock Broker: Which Do Mutual Fund Investors Favor?  Investor's Business DailyWhich are the best online stock brokers for mutual fund investors? Data from IBD's Best Online Brokers survey shows those that rate highest.
Equity mutual funds turn defensive, log out of stocks  Times of IndiaCoimbatore: Even as FPIs (foreign portfolio investors) continue to bet big on the Indian market, equity mutual funds (MFs) have turned defensive and have ...
Shadow banks feel sting as mutual funds cut exposure  Economic TimesMF investments in commercial paper and bonds dropped to Rs 3.24 lakh crore at the end of March.
Avoid investing in mutual fund NFOs: Here's why  Economic TimesWait for a fund to build a track record and prove its credentials before putting money in it, say experts.
‘Whack-a-Mole’ Stock Market Is Now Getting Hit From All Sides  BloombergThere's the trade war, the escalating conflagration in Washington, near-anarchy in the U.K. and tensions in the Middle East. Add perceptions of a stiffening ...
Anil Ambani needs $2 billion in asset sales to save last bastion  Economic TimesThe company told exchanges on April 27 that it only has short-term debt of Rs 950 crore.
Aditya Birla Sun Life Mutual Fund seeks SEBI nod for banking ETF  MoneycontrolAditya Birla Sun Life Mutual Fund has sought the Securities and Exchange Board of India's approval to launch Aditya Birla Sun Life Banking ETF, according to ...
Top fund houses among main bidders for Voda Idea issue  Economic TimesMUMBAI: Franklin Templeton, Eastspring Investments, ICICI Prudential Mutual Fund and SBI Mutual Fund were among major financial institutions to bid for the ...
Is American Century Select Investor (TWCIX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceIf you're looking for a Large Cap Growth fund category, then a potential option is American Century Select Investor (TWCIX). TWCIX bears a Zacks Mutual Fund ...
TD Ameritrade Cuts Fees on ETF Trades in Further Blow to Mutual Funds  TheStreet.comAs competition heats up in the exchange-traded funds industry, TD Ameritrade nearly doubles the roster of ETFs eligible for commission-free purchases....BLK.
Reliance Nippon Life: Soft FY19 earnings, but ADAG stake sale may move the needle  MoneycontrolHighlights: - Total AUM growth in FY19 moderates, but finer details are encouraging - Business and customer mix changes favourably with higher equity and ...
Is USAIX a Strong Bond Fund Right Now?  NasdaqIf investors are looking at the Investment Grade Bond - Intermediate fund category, USAA Income Fund (USAIX) could be a potential option. USAIX.
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
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.
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
7 Best Vanguard Funds for Your Retirement Portfolio  U.S. News & World ReportVanguard's funds are popular options to add to retirement portfolios.
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
Should I increase investments in mutual funds once I have more money to invest?  Economic TimesI am a 19-year-old student. I want to invest Rs 2,500 per month in mutual funds for 7-8 years. Can I increase the investment amount with time—once I have more ...
Investors sent net $3.99 bln into U.S. stock mutual funds, ETFs last week -ICI  Yahoo FinanceBy Jennifer Ablan NEW YORK, April 24 (Reuters) - Investors sent a net $3.99 billion into mutual funds and exchange-traded funds that hold U.S. stocks last week ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
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 ...
New SIP investors feel the pain as equity fund returns disappoint  Economic TimesSip by sip: That's how the average Indian had a taste of equities in the past couple of years. But the steady road to riches, which involved monthly mutual fund ...
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...
These are fertile grounds for long-term stock pickers, says Samir Rachh of Reliance Mutual Fund  Economic TimesSmall cap funds are going through a rough patch after a bull run in 2017. etmutualfunds.com spoke to Samir Rachh, fund manager, Reliance Small Cap Fund, ...
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.
The 7 Best Stocks to Buy From the IPO ETF  Investorplace.comThe best stocks to buy are often the IPOs that have been public for 1-2 years. Here are seven to own for the long haul.
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
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.
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
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.
Debt mutual funds with Zee exposure send investors into a tizzy  Economic TimesMUMBAI: Worries about the prospects of debt mutual funds holding securities of Subhash Chandra's Essel Group entities have resurfaced after Kotak Mutual ...
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
Diversify equity portfolio with international funds  Economic TimesAs a part of diversifying your equity portfolio, wealth managers believe investors should diversify geographically using mutual funds. They can do this by ...
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Flows to equity mutual funds rebound as rally spurs risk appetite  Economic TimesStock funds took in about 118 billion rupees ($1.7 billion), the highest since October.
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
2019 is the year of SIP, says S Naren of ICICI Prudential Mutual Fund  Economic TimesNSE Nifty 50 price-to-earnings ratio reached the highest level of 29.24 on April 2. Does it mean markets are overvalued? Should new investors enter in the ...
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
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 ...
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.

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