The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/theres-another-reason-why-odds-are-in-your-favor-22821388.aspx

Subject:  Re: Asset Allocation Date:  7/30/2005  9:11 PM
Author:  Crosenfield Number:  47084 of 75337

There's another reason why odds are in your favor if you want to beat market averages established by open end funds. When the market is up, their funds are doing well, money floods in, and they must buy. When the market drops, disgruntled investors want their money back, even with a loss, and they must sell. Thus fund managers must buy high and sell low. Plus as you said, they have to make trades in large enough amounts that they move the market.
YOU control when you buy and sell, and you can do better than the masses. YOU can buy low and sell high much more easily than a fund manager.
Best wishes, Chris
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us