Some
advisers tell a mutual fund investor not to buy a fund that clings to
a particular “style” of investment, such as small cap or large
cap, but to pick and choose what is just right for the times.
That
advice will tip you off that the adviser has no specific strategy
because he or she is willing to change to suit whatever
style may be popular at the time. That’s a form of market timing
that doesn’t work and besides, it indicates a lack of required
discipline.
My
experience has shown that such undisciplined investments with no set
strategy tend to not do well. (See the Earl J. Weinreb NewsHole®
comments.)
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