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  • #1

    Tell me what you know of mutual funds

    So, I'm looking into buying some mutual funds to secure my financial future, all that good crap, etc.

    I want to know from all you wonderful economic experts out there if this is a good time to buy. Specifically, I'm looking to basically put up a chunk of money into an index fund (S&P 500 seems to be the most popular), but looking at the graphs, I'm afraid of something like the 2003 quasi-crash. I don't want to get caught at a high point if the market's going to go down soon - that's the question - is it going to go down soon?

    Oh, and I plan to put about $2k into a high-risk international fund, any region recommendations? I'm looking into East, Southeast Asia, or Russia.

    And yes, I realize I'm asking for this on Apolyton, don't worry, I'm not basing my financial decisions on you, I'm just curious about what you all think since I'm reading more and more about the market anyway.
    Who wants DVDs? Good prices! I swear!
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  • #2
    MFS International Discovery has been the star of my portfolio over the last 18 months.
    THEY!!111 OMG WTF LOL LET DA NOMADS AND TEH S3D3NTARY PEOPLA BOTH MAEK BITER AXP3REINCES
    AND TEH GRAAT SINS OF THERE [DOCTRINAL] INOVATIONS BQU3ATH3D SMAL
    AND!!1!11!!! LOL JUST IN CAES A DISPUTANT CALS U 2 DISPUT3 ABOUT THEYRE CLAMES
    DO NOT THAN DISPUT3 ON THEM 3XCAPT BY WAY OF AN 3XTARNAL DISPUTA!!!!11!! WTF

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    • #3
      The S&P is up ~14% year-over year and has increased annually at a rate of ~16% over the last 4 years.

      This is slightly high, however at the same time it trades at a reasonable ~17 times earning as of last quarter 2006 (near the historic average of 15X)

      It might be slightly overvalued, but not severely so. I would be comfortable buying an index fund at this price.
      12-17-10 Mohamed Bouazizi NEVER FORGET
      Stadtluft Macht Frei
      Killing it is the new killing it
      Ultima Ratio Regum

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      • #4
        The irony is that those who are qualified to tell you, probably can't/won't due to professional liabilities.
        One day Canada will rule the world, and then we'll all be sorry.

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        • #5
          In the long-term, stock prices are determined by corporate earnings and interest rates. US corporate earnings are at cyclical (and post-Great Depression) highs. At a minimum, we can expect no better earnings growth than the nominal growth of the economy (~5% per annum). Higher earnings growth appears to be expected by the market, which leads me to believe that the stock market is at a peak for the cycle.

          Further, we can expect no lower interest rates for the cycle. Keeping in mind that interest rates act like gravity in the financial world, as interest rates go up, asset prices go down. You can see this happening already in house prices -- prices are moderating. At some time in the future, stock prices will prove that they aren't immune to this law of physics in the financial world.

          I can see stock prices going up in the short term, as various mergers and acquisitions take place. Also, we can expect some companies to lay off workers to boost profits and other companies to hire workers in order to get into new markets. But overall, I don't see this as a favorable investment climate for the US.

          I've been buying $FXI, an exchange-traded fund of the top 25 Chinese stocks on the Hong Kong market. It has run up over the last half-year, and shows some sign of being a bubble, so it may be too expensive for your taste. India's expensive. You might look at Taiwan.

          Good luck.
          Last edited by DanS; February 18, 2007, 15:07.
          I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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          • #6
            What do you think of Japan? They're finally growing again abet modestly.
            Try http://wordforge.net/index.php for discussion and debate.

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            • #7
              Japan's growing again, which is good news for everybody. Its economy is growing faster than that of the U.S., by the way.

              The Nikkei has almost doubled over the last one and a half years, however. I don't have a good sense of where Japan Inc. is headed, to be honest.
              I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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              • #8
                Here's some links on Taiwan. Over half of the index is electronics/semiconductors/computers. Current yield is about 2%.

                Google Finance for EWT
                IShares MSCI Index Fund (EWT)
                Last edited by DanS; February 18, 2007, 15:41.
                I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                Comment

                • #9
                  And on China. Heavy on telecomms, oil and gas, and financials. Current yield is about 1.3%.

                  Google Finance for FXI
                  IShares FTSE Xinhua China 25 Fund (FXI)
                  I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                  • #10
                    Originally posted by DanS
                    And on China. Heavy on telecomms, oil and gas, and financials.
                    Sounds like the TSX
                    12-17-10 Mohamed Bouazizi NEVER FORGET
                    Stadtluft Macht Frei
                    Killing it is the new killing it
                    Ultima Ratio Regum

                    Comment

                    • #11
                      One of the things that scares me as an investor in China is that all of these companies are mostly gov't owned, with a small private investor component. The gov't can give or take away as it wishes.

                      As far as I know, thankfully, the TSX doesn't have similar attributes.
                      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                      • #12
                        Some overly dramatic Conservative voters would probably disagree with you.
                        12-17-10 Mohamed Bouazizi NEVER FORGET
                        Stadtluft Macht Frei
                        Killing it is the new killing it
                        Ultima Ratio Regum

                        Comment

                        • #13
                          I see... I'd be figuring that I should wait as it seems that we're at the peak, or damn close to it, of the business cycle. Maybe I'll just invest in some aggressive growth funds for now. What do you all think of something in Eastern Europe/Russia and Southeast Asia?
                          Who wants DVDs? Good prices! I swear!

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                          • #14
                            VFIFX

                            it does everything for you automatically. This assumes that you want to retire in 2050.
                            “It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”

                            ― C.S. Lewis, The Abolition of Man​

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                            • #15
                              heh, it's a long tme there. Do you have any money there pchang? I might put some money in there too I guess.
                              Who wants DVDs? Good prices! I swear!

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