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:

Aditya Birla Sun Life Mutual Fund launches ABSL Nifty Next 50 ETF  Economic TimesThe ETF offers investors an opportunity to invest in the next rung of 50 stocks below Nifty 50.
NFOs from Tata, Birla mutual funds  BusinessLineOur Bureau Tata Mutual Fund has launched Tata Arbitrage Fund, an open-ended equity scheme that targets to generate reasonable income by investing ...
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 ...
Can a US citizen invest in mutual funds in India?  Economic TimesYes, a US citizen can invest in mutual funds and other financial products such as NRI fixed deposits, stocks and more, subject to prescribed regulations.
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 ...
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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 TimesAs with market cap allocations, equity funds seem to be maintaining their sectoral exposures.
Sensex down by 600 points: Here are 5 things you should avoid  Economic TimesIt is that time when as an investor you are required to be extra vigilant and avoid knee-jerk decisions.
Stock Market Forecast: Dividend Stocks To Fight Volatility  Investor's Business DailyThe broad stock market gained 2.04% last month. Still, the stock market forecast by fund managers is for more volatility going forward.
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.
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.
Mutual funds garner Rs 7,985 crore via SIPs in November  Economic TimesNEW DELHI: Retail investors continued to pour money in mutual fundS through systematic investment plans (SIPs) as the industry received Rs 7,985 crore via ...
See how they play market crash! MFs sold other stocks to lap up these 21 in October mayhem  Economic TimesPopular beaten-down stocks attracted big money from institutional investors on Dalal Street in October, when the domestic equity market was facing severe ...
A Rs 100 crore campaign for life insurance awareness  Economic TimesMUMBAI: The life insurance industry is readying a Rs 100-crore multimedia campaign aimed at spreading awareness around life insurance and removing ...
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Union MF's Vinay Paharia: We're overweight on IT, energy stocks; underweight on financials  Moneycontrol.comThe rupee's depreciation against the US dollar has improved the business outlook for the information technology sector making it a favoured bet for most fund ...
U.S.-Stock Funds Seek Another ‘Up’ Year, but It Will Be Close  Wall Street JournalMonthly Monitor: An average total return of 1.7% for U.S.-stock mutual funds and exchange-traded funds in November puts the year-to-date rise at a paltry 1.6%.
Hot and Cold Stocks of Mutual Funds in October 2018  MoneylifeIn October 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds. The net purchases of Axis Bank were Rs1,504 crore, of which ...
FIIs, MFs bet on 138 stocks in last 1 year; should you buy?  Moneycontrol.comOut of the 138 stocks which witnessed increase in weightage on a year-on-year basis, as many as 14 stocks saw a correction of 20-80 percent in the last 1 year.
Rich people, middle income group, youngsters: Who needs financial advice the most?  Economic TimesAn online survey by ET Wealth shows that only 12% of investors in India have financial advisers. You too may be missing out on the right kind of guidance.
Best Bond Funds Were US Treasuries In November As Investors Penalize Risk  Investor's Business DailyHigh-yield and other risky assets fell in November as a combination of several distinct events led to a flight to quality in the bond markets. Investors sought refuge ...
YES Bank promoters prepay Rs 400 crore loans to Mutual Fund firms: Sources  Economic TimesYes Bank promoter companies today prepaid Rs 400 crore of non-convertible debentures (NCDs) held by two mutual funds. According to ET Now, the promoters ...
Sebi may tighten liquid MF rules  Economic TimesThe capital market regulator is planning a short lock-in period for investments in liquid funds.
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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.
AQR Strips ‘Risk Parity’ Name From Mutual Fund After Redemptions  BloombergQuint(Bloomberg) -- AQR Capital Management's flagship risk parity mutual fund, which has suffered big outflows, will no longer be billed as a risk parity fund.
Why liquidity offered by mutual funds is good for you  Moneycontrol.comYou may come across emergencies which warrant sudden requirement of cash. In such a situation, mutual funds come in handy.
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Invest in stocks in run-up to 2019 general elections to profit from volatility: FundsIndia  LivemintInvesting five to six months before the elections in 2009 and 2014 earned an average 3% to 6% more than the Indian benchmark return in the five-year period to ...
4 Best Fidelity Mutual Funds for December  Zacks.comThe prolonged market volatility calls for investments in stable mutual funds that can smoothly ride the turbulence in financial markets.
Explained: What is an equity diversified fund and what makes it different?  LivemintAn equity diversified mutual fund is any equity fund which invests across different industries and sectors.
Buying frenzy: 10 stocks where foreign investors poured in maximum funds in Q2  Moneycontrol.comFPI increased stake by more than 1 percent in 30 companies out of BSE 200 including 10 stocks wherein they upped shareholding by 2.5-10.4 percent in ...
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Is Schwab 1000 (SNXFX) a Strong Mutual Fund Pick Right Now?  NasdaqAre you on the hunt for an Index fund? You should think about starting with Schwab 1000 (SNXFX). The fund does not have a Zacks Mutual Fund Rank,.
Rising volatility is slowing outflows from stock pickers’ funds: Goldman Sachs  MarketWatchMutual fund outflows are on pace for their lowest rate since 2014.
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Is Columbia Large Cap Enhanced Core A (NMIAX) a Strong Mutual Fund Pick Right Now?  NasdaqAny investors hoping to find a Large Cap Blend fund could think about starting with Columbia Large Cap Enhanced Core A (NMIAX). NMIAX has a Zacks.
5 strategies to adopt while choosing which mutual fund categories to invest  Moneycontrol.comThe decision regarding mutual fund category to invest in would primarily depend upon the investor's risk tolerance and investment horizon.
IDFC Tax Advantage (ELSS) Fund - Regular Plan NAV: IDFC Tax Advantage (ELSS) Fund - Regular Plan-Growth Equity Factsheet  Economic TimesObjective: The scheme seeks to build a diversified portfolio comprising of stocks of companies with strong fundamentals that are available at reasonable ...
Stock Update: Investors Keen on Shares of Accuray Incorporated (NASDAQ:ARAY) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Accuray Incorporated (NASDAQ:ARAY) as their share price hit $3.85 at the end of the most recent trading session.
3 Zacks Rank #1 Goldman Sachs Funds to Buy Now  NasdaqIncepted in 1988, Goldman Sachs Asset Management (GSAM) seeks to provide financial services including investment and advisory solutions, and.
Stock Update: Investors Keen on Red Hat, Inc. (NYSE:RHT) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Red Hat, Inc. (NYSE:RHT) as their share price hit $177.1 at the end of the most recent trading session.
Stock Update: Investors Keen on Independence Realty Trust, Inc. (:IRT) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Independence Realty Trust, Inc. (:IRT) as their share price hit $10.3 at the end of the most recent trading session.
Stock Focus: Investors Taking a Second Look at Genesis Healthcare, Inc. (NYSE:GEN) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Genesis Healthcare, Inc. (NYSE:GEN) as their share price hit $1.6 at the end of the most recent trading session.
Duke Energy Corporation (NYSE:DUK): Headlining Stock Attracting Attention  The Coin GuildMajor market players are buzzing over Duke Energy Corporation (NYSE:DUK) as their share price hit $89.99 at the end of the most recent trading session.
5 Key Steps to Join the 401(k) Millionaires Club  Yahoo FinanceIn 2013, Fritz Gilbert reached a goal he had worked toward for 28 years: His 401(k) hit the million-dollar mark. With that tick to seven digits, Gilbert, who is 55,…
Prepare for the stock market’s next big downturn before it happens  MarketWatchMonitor the market's key vital signs for signs of trouble ahead.
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 ...
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
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 ...
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.
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
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- ...
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.
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe risk of putting all our money in a few stocks is much higher than investing in mutual funds.
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.
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.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesThe final goal for all stock investors is the same: to get superior returns. However, in terms of what you do, there are two completely different routes.
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.​
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.
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?
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.
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
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 ...
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 ...
Investing in mutual funds? Diversify to reduce risks and enhance returns  Moneycontrol.comIn the worst of the times for stock markets, individuals invested across the asset classes are less hit as compared to investors betting all their money on stocks.
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.
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.
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 ...
Four Strategies For Managing A Portfolio Of Mutual Funds  InvestopediaNow that you've built your portfolio of mutual funds, you need to know how to maintain it. Let's talk about how to manage a mutual-fund portfolio by reviewing four ...
Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why  Economic TimesNEW DELHI: And you thought midcaps and smallcaps have been under pressure over the past three months because of the Sebi reclassification, requiring ...
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 ...
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.
Here are top buys and sells by mutual funds in August when Sensex, Nifty hit record highs  Moneycontrol.comAmong largecaps, HDFC AMC, Sun TV Network, TVS Motor, Vedanta and Tech Mahindra topped the August buying list of top 10 mutual fund houses which ...
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 ...
Choose your mobile app wisely to invest in direct mutual funds  Moneycontrol.comSome mobile apps are not updated on regular basis. Often there may be errors in the stocks portfolio of several schemes.
IL&FS downgrade to hit 35 MF schemes as well  Economic TimesMUMBAI: ICRA has downgraded the debt of IL&FS to a level below that considered investment-grade for mutual funds, putting the spotlight on asset managers ...
These 10 stocks make up over one-third of entire mutual fund portfolio in India; check full list  The Financial ExpressEven as Sensex and Nifty continue their strong rally driven by a cheer in blue chip stocks, just 10 top names make up a whopping 34% of the entire mutual fund ...
Best value-oriented equity mutual funds to invest in 2018  Economic TimesEven as the stock market stumbles along nervously, many investors are looking for tools to navigate the volatile times in the market. And suddenly everybody is ...
Mutual funds sell financial stocks the most as markets soared in January  MintMutual funds locked in gains in financial stocks the most among the top stocks in January, taking advantage of the run-up in the pack and record high levels in ...
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.
Auto ancillaries, consumption stocks top buy lists of MFs  Economic TimesAs the turmoil in mid- and small-cap shares in May tested investors ' nerves, mutual fund managers armed with money from SIP flows made their purchases ...
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:
Mutual fund investment: What to do when stock market crashes  Times NowWith regard to the mutual fund investment, should investors alter their strategies or should pull back their funds out of the schemes at the time of stock market ...
Mutual funds' AUM plunges by Rs 2.11 lakh crore in a month  Economic TimesThe drop in the asset base is mainly due to an outflow of Rs 2.3 lakh crore from MF schemes.
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.
Want to invest in ‘value’ stocks like Buffett? Look at these funds  Economic TimesValue investing is a strategy to spot stocks trading below their intrinsic values.
What Is a Mutual Fund? Pros, Cons, Types and How to Invest  TheStreet.comKeep hearing about mutual funds but don't really know what they are? No sweat! TheStreet breaks down what a mutual fund is, the different kinds, and how to ...
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.
Five basic formats of equity mutual funds you must know before investing  Moneycontrol.comIs it the right time for you to invest in mutual funds? Choosing the right mutual fund in one's portfolio is not an easy task. Here are the five basic formats of equity ...
10 mutual fund options that could be good bets as markets trend higher  Moneycontrol.comInvestment advisors feel this is time for caution and that investors should veer more towards funds with exposure towards large-caps or those that are multi-cap ...
Are you worried about fall in stock markets? 5 do's while reviewing your stock portfolio  Moneycontrol.comKeep aside the seasoned investors, most investors do lose track of their portfolios, especially when the market is in a bull run.
How much do mutual fund managers invest in their own schemes?  Moneycontrol.comEver since SEBI mandated mutual fund houses to disclose how much fund managers, directors of the asset management company and other key employees ...
Top stocks bought and sold by mutual funds in April 2018  IndiainfolineMutual funds received record-breaking inflows of Rs6,690cr into the mutual fund industry via SIP in April 2018. During FY18, the mutual funds received Rs67 ...

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