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|Subject: Re: Un'Balancing' My IRA||Date: 3/31/2002 11:58 AM|
|Author: Bluecat6||Number: 34079 of 75639|
Which index funds -- just stock index funds, or do you include bond index funds and REIT index funds?
I was refering to stock index funds.
I certainly don't have a crystal ball but this does not appear to be a time for index funds. Index funds are great when the whole economy and thus the markets are on a tear but it appears that the next year will be a time for picking and choosing.
BTW almost any large fund looks like a index fund over time. The larger the fund the more spread out it needs to be. I used to be in some of Fidelities larger 'managed' funds. Then I looked back at their performance vs. the S&P 500. The curves layed right on top of each other over a two year period.
Of course smaller funds will have less spread and be more concentrated. This can be good if the fund manager picks well. It can also underperform an index if the manager does not pick well. This risk/reward factor is higher with smaller managed funds vs. large managed funds or index funds.
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