Fund Managers make a lot of mistakes too!

I’m reading this book entitled Taming the Bear by Christopher Tate. Nope, it’s not a book about how to tame bears! It’s a book about trading and how to profit from down trending markets. I haven’t finished it yet but I thought I just had to share this little information with you.

One of the reasons why we invest through unit trust funds is because of the purported professional fund managers right? Well, note this info that I got from the book.

There’s this table in the book that tracks the performance of mutual funds in the United States of America for the period of 1956 to 1988. The table basically analyses the cash-to-asset ratio of the funds, and uses this findings as an indicator to determine whether the fund is bullish or bearish. During those 32 years, they got it right only 4 times.

Interesting huh?

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Other related posts:

Risk Tolerance Level
Risk Tolerance Level: Part 2
Back to Basics: Recovering from Negative Returns
Types of Mutual Funds (Unit Trusts)
Understanding Unit Trust
Fund’s Strong Performance

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