Just wanted to get a feel for what fellow Observers think. Would you bottom fish with a Growth Fund or a Value fund? If this sell off is a head fake, or even otherwise, do we have any insight into whether Value or Growth will do better with the next upward move?
I'm loathe to bottom fish with Gold or Oil or Biotech. I think picking diversified value or growth might be better option. For instance, I want to look into buying Value Index or Growth Index funds.
Any insights appreciated.
Comments
For me, fund purchases will simply be for funds who I had previously identified as best of breed in their specific allocation areas IMO. I don't think the market has been selectively rewarding/punishing areas to any great degree based on whether they are growth or value to this point. For international, I am steering away from China, with the exception of foreign funds with a broad mandate...the Seafarer Fund as example.
I am also targeting blue chip divi payers...as this is a golden opportunity for a 4-5% dividends from good companies...there are several funds who do this if you don't like individual holdings. I also think this may be where the money will track.
I am not smart enough to know what gold will do...many people have lost alot of money trying to figure this out.
As for biotech...many here are buying into GILD, but I have quite a bit of HC in several of my funds and prefer gambling on dice. I am going to toss some funny money to ETNHX as discussed in the monthly newsletter. A basket of bios seems a good way to play this.
But....your more difficult question involves when to put money in play. Today was a sucker's rally. Big money bought during the fire sale yesterday AM, and then sold today during the rally. With the rally over the past few years and no correction, the market's default direction appears to be down. The next 6 weeks may be a bit nerve wracking. I may buy into carnage, but just at 25% bursts of available funds.
press
Agree with PRESSmUP that everyone will have their own opinion. If I was in a more speculative mood I'd load up on the riskiest (most depressed) EM bond funds.
My personal opinion is there will be World War in 2025 and then it does not matter what I invest in.
Come on guys! So many jokers are saying this/that about this market, calling bottoms and tops and what not. We should have our own share of ANALysts here. Work with me a little.
OK, I'll play: "Yes!"
I use to ask him. "Do you want me to do the job THIS way OR THAT way". There are only two correct answers to that question and "Yes" isn't one of them.
We hit <10% pretty easy....looks like some more pain short term.
Just my opinion though.
Interesting analysis. Was curious which blue chip dividend funds you like?.... Also Any thoughts on Foreign funds with a strong European concentration. I'm invested in Harbor Intl. Thanks a lot
At this point, I have to thank everyone from the heart of my bottom.
Now if the rest oblige, we may have a meaningful discussion going.
There are a few funds I've looked at who focus on divi payors...SCHD and VIG are the ones which most often are mentioned, and I will most likely soon start a position in PQIIX which is a bit different though, in terms of its objective. You will find comments on all within these discussion boards. List below is a related link.
http://www.mutualfundobserver.com/discuss/discussion/comment/32854/#Comment_32854
As for a foreign fund, I noodled quite a bit on this, and will be opening a position today in FMIJX. This is not a pure European fund, but is a good fit for my specific needs in terms of geography
press.
thanks very much for the feedback on dividend funds. I've also been looking at FMIJX-- a great fund....