Don, I'm 60 years old next month, probably a card carrying member of the old farts club. A semi retired marketing/ design pro with world wide experience. My point was that a fund should already be firmly ensconced with the younger generation in order to be the obvious recipient of the passage of some of those funds. I see something happening economically, the burgeoning middle class as we knew it is no longer burgeoning but slipping away. Some are making it into the upper echelons and more are slipping lower as companies remove health care, other retirement bennies etc. and industries move offshore. Everthing cost more. Buy a car , get insurance and put gas in it for instance. What may appear to us as squandering is simply spending what they spend, everthing is relative. It cost me more to take the family and a couple friends to dinner than my first two cars. My sons car cost more than my first house, he's 30 and knocks down 150k mixing sound for tv and film. It's the same for every generation. The point being market the fund to those who can afford it and make it "cool" to be involved. Cool as in the right car, clothes, lifestyle etc. They're just living like we did with us bitching about what they spend like our parents did. Even tho they appear fools to us at times, they are not as the world is essentially a feedback loop and will be what they create just as the mkt is a feed back loop and becomes what the involved players together create. I never backtest anything and agree with you about systems. I just follow the bouncing ball.
Because human nature being what it is, people fundamentally do the opposite of what they should do. In this case, they hope the manager will perform as in the past, despite the evident and logical warning to the contrary. Besides, what would Money magazine, Kiplinger's and Smart Money do if they couldn't tout "The 5 Best Mutual Funds to Get in Now!" if they couldn't hype past performance? They wouldn't sell as many magazines.
Good insights, valuable points! I see quite a number of the recent grads come by my office in search of careers (as opposed to "jobs") every month...and I must say that I find it refreshing. I must admit that these "few" are far outnumbered by the masses who will search for wages and salaries....but I, too, believe in "cycles" and "this, too, shall pass." Heck, my brother got mad at my Mother 42 years ago and joined the army for 3 years.. Boy, sure showed her, eh? lol Keep on following the bouncing ball!! (My first house was 32,000, in a good neighborhood in So. California....can't buy a decent car for that now... but, as Kris Kristoferrson says...."All I ever get is "older" and "around" and the "goin' up was worth the comin' down." Oh my God, song lyrics, what next karoake?? Have a great day, banjo..... Don (Martin guitar, no banjo)
Actually, given the availability of ETFs and that there's no longer a penalty for trading less than 100-share lots, what's the point in using a fund at all? Create and manage your own.
yes, i agree to a point, any so called "hedge fund" with under 10 million is really a waste of time when you factor in costs, etc. one is WAY better off trading their own account unless the amounts managed exceed 10 million at a minimum. one uses a "hedge fund" structure when the goal is to manage 50 million or more within an alloted time frame. only the fortunate few can experience this with their own account. all my best, surfer