Mutual Fund Investment Philosophy and Management Process

Your need for the right tools is growing by the day,  as Generation Y Investors are much more involved in their investment portfolios than their parents ever were.  Are you equipped to handle this new generation?  Do you have the proofs to handle their skepticism?

I have spent the better part of 25 years working with financial advisors as a wholesaler and program designer.  I came to recognize the shortcomings in the business.  I felt financial advisors were not offering a provable philosophy and process ― and I set out to create a completely provable system that tells prospects and clients exactly what you are going to do, and more importantly, why it works!

I use my extensive mutual fund database, both current and archived, to deliver definitive reports on anything to do with mutual funds. My experience, gleaned from working with thousands of FAs over decades, suggests that combining my fact-based philosophy and process with relevant research proofs will enhance your client presentations and give you the confidence necessary to gain the upper hand in the competition for clients.

My motto is "Unless You Can Prove It, It Is Just Your Opinion!"

My Philosophy and Process

Mutual Fund History

Philosopher George Santayana said, “Those who cannot learn from history are doomed to repeat it.” Karl Marx suggested that, “History repeats itself, first as tragedy, second as farce.”  I believe investment history suggests there is truth to these claims.
 
This section provides a historic look back at:

• a wide variety of historic mutual fund return comparisons,
• the best and worst returns of various holding periods,
• returns of the American presidencies,
• the devastating effects of rising interest rates on bond fund values,
• the value of dividends to overall mutual fund growth told in text and charts,
• the mutual fund graveyard created by a market crash.

Standing the Test of Time Monthly History of the S&P 500 Quarterly Returns of the S&P 500 S&P 500 With and Without Dividends Best and Worst Years in the Stock Market Only Long-Term Investors Need Apply Index Inception Dates Money Markets Do Matter History of Inflation Rolling Periods History What Leads Out of a Bear Market American Presidency and the Stock Market An Investor's Worst Nightmare What the Up and Down Months of the Market Tell Us Investing Only During Losing Years Rising Interest Rate Denial A History of Bond Funds in a Rising Interest Rate Environment How Much Further Do High Yield Funds Fall During Rising Interest Rates

Failure of Past Performance

Past performance is, at best, an unreliable predictor of future success, yet a fund's successful past performance is exactly what most financial consultants tout in the sales process.  It is what fund wholesalers promote when they visit your office.  My studies prove that past performance — even successful long-term performance — has all the predictable success of a coin toss.!
 
I began past performance research back in 1991, and I can claim that long-term returns are no better at predicting future fund success than is the return of a single year. 
 
I also examine the bottom performing mutual funds from one period to the next.  Ironically, poor performers go on to deliver follow up performance in a succeeding period more often than the previous period’s top performers.

How Often Do Top-Performing Funds Repeat? Maybe That Is Why They Are Called PEAK Performers Read Between the Lines of Long-Term Results Do Newly Created Funds Have a Performance Advantage? Quit Settling for ETFs What Became of the Top-Performing Funds of 2009-2013?

Statistical Analysis

 

Financial Advisor Incomes Fund Expense Average Truth About Settling for ETFs