VooDoo Training For the Stock Market

If you go to Haiti or other places in the Caribbean you may run into the Voodoo tradition of magic. There are long and mostly noisy rituals with the medicine man spouting words that bring great power and conjure up whatever it is the supplicant desires. Great amounts of smoke and mirrors.

Does this remind you of anything?

I hear the mesmerizing words of my broker telling me about a wonderful stock. He produces multicolored charts and graphs that dazzle my eyes. His chanting is "BUY, BUY, BUY". I can't resist. He has me under his spell. Thus the magic of Wall Street. Great amounts of smoke and mirrors.

Brokerage houses and mutual funds only want you to do one thing ? BUY and HOLD. Never sell.

To escape the hold of these magicians you must start to think for yourself. I am sure you realize that for the past 3 years you have been losing money. The recent rally has returned some of your losses and Maul Street wants you to hang in there as the rest of your money will be returning. Maybe. If the broker (magician) keeps doing what he has been doing you are going to get more of the same results. If you have lost 30 to 50% of your savings during the past 3 years don't you think you could do as well without the "help" of a broker or financial planner?

OK. No more glossy colored folders (smoke and mirrors) about how wonderful a company is. If you know it then so does everyone else. This type of 'research' is worthless. Leave that to the mutual fund managers. It seems to be what they do best - or is it worst?

Wall Street preaches the lie that if you hold you will make money, but that is only half the story. You have to be able to hold for 30 years. Oh, they forgot to tell you that?

The most important thing about the stock market is not buying ? it is selling. Did you realize that every 10 years about 40% of the S&P500 index changes? Mr. Standard and Mr. Poor realize you can't hold onto a loser so they drop out the weak ones and replace with stocks that are going up.

You want to be in the market when it is going up, not down. You have to know when the market is going up and that is called market timing. It is not cheating by late trading; it is understanding that the long term trend is up (or down) and you want to own funds at the time (or be out of the market entirely). A broker or financial planner will not help you, but it is very easy to learn. Go to the search engine called www.Google.com and type in market timing. You will be flooded with information.

You must to get out from under the Voodoo spell of Buy and Hold as it is a guaranteed loser.

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:

MF shopping list: Top 30 stocks that fund managers bought & sold in June  MoneycontrolSIPs continue to be the backbone of mutual funds as inflows via this mode remained above Rs 8000 crore for a seventh consecutive month despite a mixed ...
Equity mutual fund inflows hit seven month high in June despite volatile stock market; key things to know  The Financial ExpressThe equity mutual inflows touched a *fresh* seven-month high in June despite heightened volatility in the stock market.
What India's three largest mutual funds bought and sold in June  LivemintInflows into Indian equity mutual funds jumped the most in three months in June.India's top money manager HDFC Mutual Fund held $22 billion in equities.
Stability, fundamental strength guide MFs’ stock picks in June  Economic TimesFor fund managers committing money in June, the guiding principle was mere survival through stable returns. Given the uncertainty in demand and few signs of ...
ITR filing: How to report income from investments  Economic TimesWhen you sit down to file your income tax return (ITR), Form 16 issued by your employer may not be the only document you need. The income from selling ...
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Risk-taking mutual fund investors can invest in Mirae NFO  Economic TimesThe fund will be managed by Ankit Jain and investors can put in a minimum of ₹5000 as a lumpsum, or invest through the SIP route.
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The Most Expensive Fund in the Riskiest Investment Style  ForbesRecently, I warned investors to avoid the Small Cap Growth style. This week, I've identified a fund that has outperformed in recent years but allocates to ...
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Mutual funds wrap: Based on benefits — Can CPSE ETFs be game changer towards low risk ELSS funds?  MoneycontrolIn the last one year, the CPSE ETF has delivered a return of 11.69 percent, while in the last three years, the scheme delivered 9.19 percent.
BlackRock and Vanguard are the biggest investors in private prisons  CNNVanguard and iShares owner BlackRock are the two largest holders of prison companes CoreCivic and GEO. State Street Global Advisers, Prudential's QMA ...
Local mutual funds’ global bets disappoint on returns charts  Economic TimesInternational schemes of domestic mutual funds mostly held stocks of global companies that have been underperformers. Cognizant, Alphabet, Facebook and ...
Fall in HDFC MF stock could be opportunity to buy: Analysts  Economic TimesHDFC Asset Management shares plunged 6.3 per cent on Tuesday — the highest single-day fall in nine months — as investors slammed the mutual fund's ...
How to Invest Like Warren Buffett in 2019 and Beyond  Motley FoolThe Oracle of Omaha has achieved some remarkable results, but his investment style isn't too complicated.
Mid, small caps offer opportunities, but hold stocks for at least a year  Business StandardAs market pundits had predicted, the stock market rally has become broader after the Lok Sabha elections ushered in a stable government. And the positive ...
Best Mutual Funds: This Baron Fund Seeks Unique Stocks  Investor's Business DailyAlex Umansky does not focus on macro market questions. Instead, he focuses on finding stocks that make his portfolio one of the best mutual funds.
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Growth Stocks: Why This BMO Fund Is Rotating Into Cheaper Names  Investor's Business DailyWhat goes up must come down. After a big run-up by many growth stocks, BMO Large-Cap Growth Fund is rotating into names that are attractive, and cheaper.
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4 Nuveen Mutual Funds to Buy for Great Gains  NasdaqNuveen Investments, headquartered in Chicago, IL, was founded in 1898 by John Nuveen. The company seeks to provide financial services to clients by.
These stock and bond ETFs cost you almost nothing to own  MarketWatchTop money and investing features from MarketWatch this past week.
Deutsche Bank Quit Stock Trading. Blame Computers and the EU.  Barron'sMachines can trade. It takes people to think. That's one of the lessons from Deutsche Bank 's (ticker: DB) decision this month to close its equity-sales and trading ...
“We run Kotak Standard Multicap Fund with a large cap tilt,” says Harsha Upadhyaya, CIO – equity, Kotak AMC  Economic TimesKotak Standard Multicap Fund is the largest fund in the equity mutual fund universe, with assets worth Rs 26,010 crore. The scheme has significantly ...
Beware! Exotic funds are a $40 billion time bomb ticking on D-Street  Economic TimesNothing grows this fast in finance without storing up trouble for the future.
India to witness launch of second ESG Fund from MF industry  MoneycontrolQuantum Mutual Fund will launch Quantum India ESG (Environment, Social and Governance) Equity Fund on June 21, which will remain open until July 5.
Debt-laden DHFL gets Sebi approval to exit mutual fund business  Economic TimesDebt-laden Dewan Housing Finance Corporation (DHFL) on Wednesday said it has received the Securities and Exchange Board of India's (Sebi) approval to ...
The 5 Best Investment Strategies In A Volatile Market  ForbesThe S&P 500 is hanging right around 2850. In late January, 2018, it hit a then closing peak of 2872. In the 17 months since it's struggled a couple of times to eke ...
HDFC MF to buy Rs 500-crore NCDs of Essel Group from its debt schemes  Economic TimesHDFC Mutual Fund has decided to buy Rs 500 crore worth of Non-Convertible Debentures (NCDs) of the Essel Group from the debt schemes that have ...
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Is My Fund a Liquidity Trap?  Morningstar.comFear or Fear Not? My colleague John Rekenthaler recently wrote about the hazards of illiquid mutual fund investments. Long story short, mutual funds and ...
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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 ...
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Is your mutual fund buying or selling stocks too much?  LivemintA turnover ratio measures the extent to which a fund manager churns her portfolio.If the portfolio turnover is greater than 100%, that typically means that the fund ...
Karen Telleen-Lawton: ESG Investing; Can You Have Your Cake and Eat It, Too?  NoozhawkSocially responsible investing (SRI) has been around since before 1980. SRI has broadened in the last decade or so and taken on a new name. ESG investing ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
5 Top-of-the-Line T. Rowe Price Mutual Funds  Kiplinger's Personal FinanceT. Rowe Price mutual funds are a rarity in that they have found success across a wide range of strategies. Here are five of their best offerings.
Should you invest in international mutual funds?  LivemintIf you were to sort all equity mutual funds available for retail investment by their one-year performance, international funds would come on top. The best ...
Consider investing in direct stocks only if you can monitor portfolio proactively  LivemintDirect stocks can be considered if you have the ability to do research to identify the stocks to be bought as well as to be sold.You should be revisiting your ...
Here's a look at the mutual fund favourites in May  MoneycontrolThe second month of FY19-20 saw a notable change in the sector and stock allocation from the top 20 mutual fund houses. On a month-on-month basis, MFs ...
What India's top three mutual funds bought and sold in May  LivemintInflows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Govt increases limit to disclose investment in stocks, mutual funds for employees  Moneycontrol.com*Service* rules say no government servant shall speculate in any stock, share or other investment.
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 ...
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 ...
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 ...
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 ...
Here are a few mutual funds that stocked up on YES Bank in Q4FY19  Business StandardShares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 ...
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 ...
Index mutual funds see 60% jump in assets in a year as actively managed funds struggle  Economic TimesIndex mutual funds — a category that aims to mimic returns of benchmarks, like Nifty or Sensex — have seen their assets surge 60% over the past one year as ...
Flows into mutual funds revive in May as Modi win seems to spur risk demand  LivemintFlows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Actively-managed large cap mutual funds poised for a comeback  Economic TimesDefying predictions of their imminent irrelevance, some actively-managed large cap mutual fund schemes have bounced back to the top of the return chart.
Best mutual funds to invest for five years  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Should you invest in algorithm-based quant mutual funds?  Economic TimesQuant funds work on a data-driven model that relies on a mix of parameters and algorithms to identify the right stocks at the right time. But can they beat actively ...
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 ...
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 ...
Stick to MFs if you lack knowledge on stocks  LivemintWhile equity is surely the way going forward considering your age and the financial goals, how you buy in equity is important.Direct stocks work very well if done ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
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.
First-time investors can look at these mutual funds for long term  Economic TimesInvestors, who were waiting on the sidelines for the uncertainty to recede, are now looking to deploy their cash. But, valuations remain steep.
Investment limits Sebi prescribes for mutual funds  LivemintIn case of unrated debt instruments, a mutual fund cannot invest more than 10% of the portfolio in a single issuer and 25% in all such securities.In case of listed ...
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.
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.
Will these mutual funds help me to create Rs 8 crore?  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
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, ...
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha ...
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 ...
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 ...
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 ...
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 ...
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.
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
Heres why investors should make index funds a part of their core portfolio  Business StandardWe often hear statements such as “Localisation is the key to success in India” or “What works in the rest of the world does not work in India”. These statements ...
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 ...
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.
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' ...
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 ...
Over diversification in investing tends to reduce returns: Here's why  Economic TimesInvesting in too many products, whether in stocks or MFs, shows the investor is not thinking hard enough.
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.
Defaults, downgrades hit debt mutual funds: What investors should know and do now  Economic TimesAs debt mutual funds land in trouble following multiple defaults and downgrades by bond issuers, ET Wealth addresses some key questions from worried ...
Investment in equity MFs drops 35% to ₹1.11 lakh crore in FY19  LivemintNEW DELHI: Investors pumped in more than ₹1.11 lakh crore in equity-oriented mutual fund (MF) schemes in 2018-19, a decline of 35 per cent compared to ...
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 ...
Should you invest in mid- and small-cap funds now?  LivemintWith the new government taking office with a massive majority, it has the elbow room to push through the reforms. No wonder markets are expecting the ...
Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.
Small and mid caps revival on cards; should mutual fund investors join the party?  Economic TimesMany stock market pundits believe that mid cap and small cap stocks are likely to bounce bank in the current rally in the market.
Fund managers raised stake in 194 stocks in Dec quarter. Is it a good idea to follow them?  Moneycontrol.comFund managers raised stake in as many as 194 companies in the December quarter as compared to the previous quarter. Stocks of some these companies have ...
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 ...

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