What Are You Waiting For?

Do you own any mutual funds? In an IRA or 401K or wherever. Privately or at work.

Have you called your fund manager to find out what is going on with your fund? Are they under investigation for late trading, improper pricing, deviation from length of sales defined in the prospectus or stale trading? Are my questions too hard?

Please don't be confused. It seems that most fund owners haven't done anything. There is a serous bout of complacency going around. Forget the flu; this is going to affect your pocketbook. Oh well, it's your money and if you don't care if some crook in a suit with a manicure is handling it then that is your loss.

Now we find out that even those foreign funds have bandits for managers. The British mutual fund industry called unit investment trusts has been doing almost the same thing as our home-grown thieves. It seems the little investor has his wrists tied to his ankles all over the world. The regulatory agencies such as the SEC (Securities and Exchange Commission) have NOT been doing their job. If you have questions about your funds you can call them in Washington at 202-942-8088. They must tell you as this is public information.

The late trading scandal hit first and has been misnamed as market timing. Late trading is illegal whereas market timing is legitimate. Late trading allows order entry at today's price as long as 3 hours after the market has closed. During that 3 hours news of financial importance regarding stocks in a particular fund could be affected by legal decisions, profit pronouncements, etc.,etc. That news could make the fund go up 2% to 5% the next day when the late trade is then offset taking a disproportionate amount of profits from the regular fund holders. That does not sound like much, but when you are dealing with big numbers it is plenty. What is nice for the crook is there is almost no risk.

In many funds there are classes such A, B, C and other strange letters. These have to do with how much and when the commission is charged. If you put in $25,000 or more you are supposed to get a better price, but many funds have been charging more.

In the prospectus it may say you are required to hold a fund for X numbers of days or pay an extra amount called a redemption fee. Their friends, the big money folks, have not been so charged.

Stale trading is the new one. It seems the buy or sell orders are not entered on the day they were placed, but done so at a more favorable time to allow for a better profit.

These practices and ones not yet reported and those I have not heard of are stealing money from your account. What are you waiting for?

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

---

Acapulco - The Stock Market Dives

There is a famous cliff on the ocean in Acapulco... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Selling

The stock market has been going up for more than... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

The Information Age

It is wonderful to be alive in the information age.... Read More

Inertia Syndrome

When it comes to buying a stock or mutual fund... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

Oil Stocks CHK WLL - What Is Their Worth?

(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

What the SEC Really Thinks About Mutual Funds!

Let's go into the details of why non-indexed mutual funds... Read More

No Load Mutual Funds or Exchange Traded Funds (ETFs)?

If you are fed up with early redemption charges and... Read More

Stocks Options Trading

Let's assume that you want to make some serious money... Read More

Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market

In a previously written article, we expanded the use of... Read More

Long Term Investing

In his wonderful book, 'Multiple Streams of Income', best selling... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

Dont Buy Stocks based on P/E Ratio alone

I use the P/E ratio as a secondary indicator for... Read More

Trading Education: The Best of Both Worlds!

I made my very first investment in the stock market... Read More

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

Most stock traders know that momentum trading can be a... Read More

The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading

Stock trading remains a very competitive field and the stock... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

Mousetrap

The spring-loaded rat catcher is the ultimate low-tech device invented... Read More

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Pathways

During our travel down life's path we come to many... Read More