Invest Intelligence When It Realy Matters
Mutual Fund Disasters: David Tice and His Prudent Bear Fund
Want to save tens of thousands of dollars?
In this article, I tie in numerous aspects of erroneous and deceptive marketing by the mutual fund industry, executed primarily through the business arrangements funds have with the financial media.
You will see how virtually every investor has been fooled by these tactics. As a result, they are being taken to the cleaners. I use examples of several of the "best-known" fund managers to illustrate this grand scheme of deception, which I feel constitutes fraud.
Previously, I discussed how Legg Mason’s Chief Investment Officer and fund manager of the Legg Mason Value Trust Bill Miller, went from top to bottom in just a few short years.
See here for the article on Miller.
Part of the blame for Miller’s poor decisions points to the fundamental flaw of equity mutual funds and other managed accounts that must remain largely invested in the stock market at all times. This is a critical consideration that you are unlikely to hear being discussed in the financial media due to the misaligned agendas of the media.
As previously detailed not only did Gross receive a bailout for his useless bond fund at the expense of taxpayers (see here and here), he has been trying to bash the stock market by calling it a Ponzi scheme because he has been buying and selling U.S. Treasuries at the WRONG times over the past few years, so he wants to distract attention from this fact.
In addition, Gross realizes that inflation is coming. This is going to destroy bonds. So he wants to create the perception that stocks are just terrible, hoping investors will buy his fund. But if you are considering purchasing this fund, I strongly suggest you read this article first. It could save you thousands of dollars.
But if you are considering purchasing this fund, I strongly suggest you read this article first. It could save you thousands of dollars.
After seeing their funds take hits of 40%, 50% and even 90%, many investors began to question the merits of mutual funds. Mutual fund companies sought come up with a new pitch. As you might recall, I discussed this in the past.
As you might recall, I discussed the realities of these funds in the past. See here.
Right about the same time as the mutual fund industry was in dire straits,******** was attracting a good deal of investors. ********* knew that the best way to lure in the sheep was to become a whore for CNBC.