QUOTE(Pink Spider @ Jul 27 2015, 10:14 AM)
Market or index =/= Fund
If the index goes up and up and up and up, yeah correction may be due.
But if index yo-yo but fund goes up and up and up, the fund manager is doing a good job buying undervalued stocks and dumping overvalued stocks (repeat this over and over and over and over the years)
This is the simplistic view of things.
If the index goes up and up and up and up, yeah correction may be due.
But if index yo-yo but fund goes up and up and up, the fund manager is doing a good job buying undervalued stocks and dumping overvalued stocks (repeat this over and over and over and over the years)
This is the simplistic view of things.
QUOTE(IvanWong1989 @ Jul 27 2015, 10:31 AM)
is there any chance a fund still do good, while global bear is ongoing?
Fund manager have to be very picky about what they pick i think .
A fund manager may want to buy when the market is down and the stocks are undervalued. But if there is not enough cash reserve and the investors in the fund are doing panic selling, then the fund manager will have no choice but to sell even if she wanted to hold on to the shares and buy more undervalued shares.
I wonder how the fund manager juggle the above scenario.
Jul 27 2015, 02:56 PM

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