The Week Ahead: Monthly Signal Keeps Investors On Right Track |
October 02, 2016 |
October 2016 Bond Updates
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Despite the market angst over the FOMC meeting and comments from the Big Bears since August that the stock market had to crash the major averages survived another month. Heading into the last day of the month the S&P 500 was just 2% below its all time high yet according to AAII only 24% of individual investors were bullish.
In addition to the last day of the month it is also the end of the 3rd quarter. Active managers are likely to again underperform their benchmarks for another quarter. Earlier in the year a Financial Times article revealed that "98.9 per cent of US equity funds underperformed over the past 10 years, 97 per cent of emerging market funds and 97.8 per cent of global equity funds."
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Looking at those funds sold in various Euro zone countries the message is the same as their chart indicates. Almost 100% of a actively managed equity funds sold in the Netherlands have failed to outperform their benchmarks over the past five years.
How can investors do better?
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View more at: http://www.forbes.com/sites/tomaspray/2016/10/01/the-week-ahead-monthly-signal-keeps-investors-on-right-track/
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