Paula's query on investing

Tom Lehman uswa12 at
Tue Oct 13 09:24:29 PDT 1998

Dear Doug,

Does this mean you think the S&P 500 has bottomed out?

Fraternally, Tom

Doug Henwood wrote:

> Greg Nowell wrote:
> >3. Forbes publishes every August and early Septembrer
> >its ratings of mutual funds and closed end funds
> >(which I think was Sept.; the other was early August).
> >I personally think this is one of the better ratings
> >out there (money magazine does it, WSJ does it too, I
> >think quarterly and annually) because rather than rate
> >over a specific *time* they rate over *two complete up
> >and down cycles.*
> >
> >4. Conservative financial advice is: stick with funds,
> >not specific stocks, and stick with funds that have
> >gotten good ratings in Forbes.
> I'm deeply skeptical of these mutual fund rating charts. It is almost
> impossible to beat the market over the long term, and there's no reason why
> a fund that has done well in the past should do well in the future. In
> fact, given fees and trading costs, it's almost impossible to match the
> market. If you must consort with stocks, the best advice is probably to
> stick with an index fund and don't try to trade it. Even better advice, of
> course, is to organize and smash the capitalist state, but that's another
> story.
> Doug

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