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Mutual Fund / ETF Research Newsletter ... June 1, 2020 edition

edited June 2020 in Fund Discussions
In this months newsletter below is Dr. Madell's opening paragraphs. They read as follows:

With all the pandemic, economic, geopolitical, and now societal angst being felt worldwide recently, it should be no surprise that many stock funds have taken it on the chin lately. On the other hand, most bond funds have proven to be a ballast during this period, as discussed in last month's Newsletter. This once again proves that, for many, in order to more safely avoid the risks of an all-stock portfolio, one containing both these asset classes makes a whole lot of sense. (Of course, the reverse is true as well: If bonds enter a prolonged period of poor or even negative performance, it should prove to be wise to be a holder of at least some stocks as well as bonds, as the two asset classes tend to go in somewhat different directions.)

But what is truly surprising is how well stocks have confounded our worst fears which might have suggested a more drastic collapse. In fact, for those who have been long-term holders, it might almost appear that nothing at all has been happening. In particular, had one stayed in the game over the last 10 years, the majority of holders of quality stock funds and ETFs, if they, similar to Rip Van Winkle, had just woken up from a one decade long sleep and took a glance at the performance of their portfolio, they would hardly be aware of anything out of the ordinary having happened.

As you will see in the many performance results presented in this article, Armageddon has not yet occurred for most stock investors, although that is certainly no guarantee that things may still not get worse rather than better.

To continue reading click on the link below.

http://funds-newsletter.com/jun20-newsletter/jun20.htm

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