I wrote this article on August 18, 2011 on my Golden Valley Patch Blog.
No great words of wisdom from me this week. Like everyone else, I am waiting for the stock market to put in a meaningful “bottom” in order to take advantage of the great summer of 2011 stock market GARAGE SALE.
I did, however, find two great articles on mutual funds that I think would be of interest to all Minnesota company retirement plan participants. The vast majority of 401(k) plan participants own mutual funds in their company retirement plan accounts. An equal number have no idea how to evaluate those mutual funds.
The first article is from the Sunday, Aug. 13, New York Times. David Swensen is the chief investment officer at Yale University. Swensen is very well respected in the investment and university endowment community. His observations on the mutual fund industry are worth your reading time.
Business Insider is a Website that serves many financial services professionals. Anyone can visit there, but you really have to have a special interest in economic and investment industry news to enjoy their daily content.
The editor-in-chief of that Website, Henry Blodget, posted a commentary on the David Swensen mutual fund article. It’s titled The Mutual Fund Industry Is A Huge Scam That Costs Investors Billions Of Dollars A Year.” I am not surprised by the fact that Business Insider responded to the article because of the reputation of the author and the conclusion that the article provides. I am also not surprised that the author agrees 100 percent with Mr. Swensen’s analysis of the mutual fund industry.
Ric Lager
Lager & Company, Inc
