Past PerformanceMutual Funds
Past performance is not always reliable. Many investors sink their cash in last year’s top mutual fund listed in a magazine or on a financial news channel. You should not be one of them. You need to realize that when the best performance is listed it is last year’s performance. It did this capitalizing on opportunities which were already offered and expired. There is no guarantee the fund can continue to do this in the present year. Investors who place their money in peaking or peaked funds may be in for a disappointment if the fund levels off toward industry averages.
A fund’s ability to provide returns is based on the managing team’s capability to find opportunities and seize advantage of them. Your primary indicator of that capacity is past performance, but you should not chase history. Managers cannot repeat their past miracles easily. They are dependent on the opportunity being available and recognizing it in time to capitalize on the chance. As a result, funds often underperform after outperforming averages, benchmarks, and indexes. Finding a management team which can steadily perform average or better is better than last year’s “hot performer” mutual fund. Most of those funds crash and return to below average.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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