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 tells you that the adviser has no specific strategy; 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 as well as they should. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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