Downdraft

For the year 2000 we have seen hundreds of mutual funds lose 40%, 50% and more of their value. This does not seem right since the fund is supposed to be managed by a professional. How can this "professional" do such a bad job? More than half of the funds this year will not out perform the S&P500 index which closed down about 10%.

What is going on?

When you put your money in a mutual fund you are supposed to be hiring someone who knows how to make money. He should be able to do a better job than you. But he has not. If this person worked for me I would fire him. You don't hire people to lose money for you.

Now that you have fired this bum let's examine why he did such a poor job (pun intended). Each mutual fund has one or more analysts who are supposed to be able to determine if the stock of a company is a good buy. That means will it go up?

These so-called analysts do the kind of research that Wall Street says is necessary before purchasing a stock. Yes, they do all the standard things that anyone can do such as determine company growth, profit margins, P/E rations, cash flow, etc., etc. They get all that wonderful information from Morningstar and apply statistical analysis you and I would never think of. And when it comes right down to it what do they have? You can research something until you are blue in the face, pile on information upon information, but there is one thing all this nonsense will not tell you. Will the stock go up?

The kids who do this analysis (sorry, kids, you're only a man when you pick a winner) have an agenda. For the fund-type analyst he wants to find a stock that will not go down because that hurts the fund manager who gets paid not by performance but by the amount of money he can keep in the fund. He gets to skim his percentage off the top every year and never has to make the investor any money. Like paying someone to mow a parking lot.

Let me give it to you in plain language. Fund managers don't know how to be wrong. It is OK to be wrong, but when they have picked a dog and it starts down they refuse to get out to preserve capital. There is no excuse for any mutual fund to lose 30% or more of its capital. They only know how to buy and hold. Many times there is nothing to buy and cash is the only good position, but they don't seem to understand that.

When I was a floor trader on the exchange I was only right about 40% of the time, 20% I got out even and 40% I took a hit. When I was wrong I ran, did not walk to the nearest exit. Losses must be kept small. These money managers have never learned that basic rule. In one of the Woody Allen's movies he was asked what he did for a living. He said, "I am a money manager. I manage peoples money until it is all gone." Does that sound like your fund manager?

Isn't it time to find a fund that is going up?

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.

http://www.mutualfundmagic.com; 1-888-345-7870

move in cleaning service Glencoe ..

In The News:

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Gaia Family offers fixed upfront pricing for IVF cycles with unlimited embryo transfers and financial protection, partnering with over 100 U.S. fertility clinics.

The Jetsons Act aims to position Pennsylvania as a leader in advanced air mobility by establishing regulations for hybrid ground-air vehicles.

Fake Geek Squad invoice emails are targeting users with convincing charges and urgent phone numbers to steal personal information and money.

Fox News Digital's artificial intelligence newsletter digs into a robot in Russia that faceplanted, George Clooney's alarm and OpenAI's rivalry with the New York Times.

Major data breach at Conduent exposes personal information of 10+ million people. Government contractor hit by cyberattack affecting Medicaid, child support systems.

Texas startup Janta Power raises $5.5M for innovative vertical solar towers that generate 50% more energy than traditional panels while using just one-third the land.

NASA's twin ESCAPADE spacecraft launched aboard Blue Origin's New Glenn rocket Thursday afternoon from Cape Canaveral, beginning their journey to Mars with arrival expected in 2027.

Learn how to set email reminders on iPhone and Android so you never forget to reply again. Simple built-in features help you stay organized and on top of messages.

Discover how Apple's passkeys revolutionize Mac security by replacing vulnerable passwords with biometric authentication and encryption for ultimate protection.

New survey reveals 78% of parents fear AI scams targeting their kids, yet nearly half haven't discussed these threats. Learn why this dangerous gap exists.

Chrome now autofills passport and driver's license info automatically. Google's latest browser update adds official document support with encryption and user control.

Scammers impersonate Department of Veterans Affairs employees claiming veterans owe money, but real VA communications only direct to VA.gov or official channels.

The AltoVolo Sigma hybrid-electric aircraft flies 500 miles at 220 mph while operating 80% quieter than helicopters, featuring safety systems and compact design.

Google search scam alert: fake customer service numbers can give scammers remote control of your phone. Learn how to spot these traps and protect yourself.

Electric vehicles overtake gas cars in total CO2 savings after just two years of driving, with emissions benefits growing over time as power grids get cleaner.

Louvre Museum reportedly used "Louvre" as password for surveillance system during $100M jewel heist. Learn how weak passwords put even famous institutions at risk.

Bipartisan AI jobs bill from Sens. Hawley and Warner would require companies to report AI-related layoffs and hiring to Department of Labor quarterly.

Joe A. from Shelton, Connecticut, lost $228,000 to a ZAP Solutions cryptocurrency investment scam after his divorce, highlighting rising online fraud.

AI-powered autonomous trucks from Waabi and Volvo target U.S. freight driver shortage with Level 4 self-driving technology and NVIDIA computing platform integration.

Survive flight disruptions with expert travel tips: Book early morning flights, download airline apps and know your refund rights during service cuts.

Apple's iOS 26.1 update delivers major security fixes, performance boosts and enhanced privacy controls for your iPhone. Discover why updating now protects your data.

Russian hackers use fake CAPTCHA tests to spread dangerous malware targeting governments and journalists. Learn how to protect yourself from these deceptive attacks.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Miami-Dade debuts America's first autonomous police SUV with AI cameras, drone deployment and real-time crime detection in groundbreaking law enforcement pilot.

Downdraft

Stocks & Mutual Fund