GC Tallyho asked:
I researched about 25 to 30 Mutual funds in order to buy six to ten funds and was surprised to see almost all went down in November. I would like to buy, but am not sure if Mutual funds have a history of going down in December. Does anybody know?
I researched about 25 to 30 Mutual funds in order to buy six to ten funds and was surprised to see almost all went down in November. I would like to buy, but am not sure if Mutual funds have a history of going down in December. Does anybody know?
no, they only do that, when the market takes a beating.
Actually, December is typically a very good month for the stock market, but then again so is November. I guess it just goes to show that historical averages tell you very little about what is going to happen today, tomorrow, or next month.
Take a look at the following link. It includes a chart of average monthly stock returns as measured against a basket of well known market indexes. It turns out that December has the best average, while August is the worst, at least during the period measured (1989-2006).
Mutual Funds are long term investments. What they do in a particular month has no bearing on their long term result. The difference in buying at the high or at the low of a fund will make microscopic difference 20 years from now. Think long term my friend and put a happy smile on your face!
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